UNIT 1: THE CONCEPT OF ORGANIZATIONAL BEHAVIOR

Objectives
At the end of this unit, you will be able to:
 Understand concept of organisational behaviour
 Understand nature of organisational behaviour
 Understand importance of organisational behaviour
 Understand determinants of organisational behaviour
 Understand functions and roles of organisational behaviour

Introduction
According to L. M. Prasad, “Organisational behaviour can be defined as the study and application of
knowledge about human behaviour related to other elements of an organisation such as structure,
technology and social systems.” Organisational Behaviour (OB) is a fascinating and tough subject to
research. It has to do with individuals, groups of people, and teams of people working together.
When situational elements interact, the investigation becomes more difficult. The study of
organisational behaviour is concerned with an individual's expected behaviour inside the company.

1.1.Introduction to OB
Organisational behaviour is the study of human behaviour in organisations in order to improve
active human performance so that we can accomplish both organisational as well as human
goals. The goal of organisational behaviour is to identify the best methods for individuals to
participate. The study and use of information about how people behave inside organisations is
known as organisational behaviour. It is a human gadget designed to assist humans. It relates to
people's behaviour at work in all sorts of organisations: public, private, cooperative, commercial,
or service organisations. Whatever type of organisation you have, there exists a need to
understand organisational behaviour. Understanding, predicting, and controlling human
behaviour and the elements that impact people's performance in an organisation are all part of
the study of organisational behaviour. It is focused with the behaviour of individuals and groups
rather than the aggregate behaviour of all members. The study of people's thoughts, feelings,
emotions, and behaviours in the workplace is known as organisational behaviour. Understanding
individual behaviour is difficult in and of itself, but understanding collective behaviour in an
organisational setting is a massive administrative effort. Organisational behaviour is the
academic study of how individuals behave in organisations, and its concepts are mostly used to
improve the efficiency of enterprises. Each individual contributes a unique set of beliefs, values,
attitudes, and other personal qualities to an organisation, and these qualities of all individuals
must interact with one another in order to construct an organisational context. Managers must
grasp the underlying human element of their work in addition to the ongoing behavioural
processes involved in their own occupations. The term "organisational behaviour" denotes to
work-related behaviour that occurs in organisations.

The major disciplines that contribute to formation of OB are;

 Psychology.
 Sociology.
 Social Psychology.
 Anthropology.
 Political Sciences.
 Economics.
Organisational behaviour is associated with:
 The characteristics and behaviours of workforce in isolation
 The characteristics and processes that are part of the company itself and
 The characteristics and behaviours stem directly from individuals with their own needs and
motivations working within the organization's structure.

For instance: If i want to understand my boss's personality, I'd look at the individual level of analysis.
If we want to learn how my manager's personality influences my team, I'm looking at it from a team
standpoint. However, if I want to understand how my business's culture influences my boss's
conduct, I'd be interested in the organisational level of analysis (OB). OB encompasses issues ranging
from the person to the organisation. One cannot fully comprehend an individual's behaviour without
first understanding about that individual's organisation. Similarly, he cannot comprehend how the
organisation functions without first understanding the people who comprise it. As a result, people
impact and are influenced by the organisation. Thus, a basic understanding of organisational
behaviour can help managers better grasp the wide range of human requirements and expectations.

1.2.Importance of OB
 Improves the organization's Goodwill
 Optimal and Improved Use of Resources
 Creates a Better Organizational Environment
 Understanding Purchase Behaviour of Consumers
 Skill Improvement
 Anticipating business-related events:
 Aids in Comprehending Human Behaviour
 Assists in Managing and Guiding Behaviour
 Explains Power and Sanction Application

1.3.Nature of OB

 Organisational behaviour is a rational thought process, not an emotional reaction to individuals.

 Organisational behaviour is an applied discipline that tries to reconcile human and technological
values at work.
 Organisational behaviour is a new topic of research that combines behavioural science with
management.

 Organisational behaviour is a science as well as an art. A science is the scientific study of human
behaviour. The application of behavioural knowledge and abilities obviously tends toward the
status of an art form.
 Organisational behaviour manifests itself at various levels.
 Organisational behaviour does not exist in a vacuum (emptiness).
 Organisational behaviour is empirical, interpretive, and critical at the same time.
 It is a different area of study.
 Interdisciplinary approach as it attempts to combine information from diverse behavioural and
social sciences such as psychology, sociology, anthropology, political science, and economics,
among others. Organisational behaviour, in fact, is a branch of applied behavioural sciences.
  Normative and value centre
 Humanistic and optimistic
 Organisational behaviour is a subset of general management, not the entire management
structure. It reflects a behavioural management strategy.
 Organisational behaviour is a corpus of theory, study, and application related to a rising concern
for people at work. It aids in the comprehension of human behaviour in workplaces.
 Organisational behaviour is a human instrument designed to help humans. It aids in the
prediction of individual behaviour.

 Organisational behaviour is a goal-oriented and action-oriented discipline. It promotes reasonable

thinking about individuals and their actions.
 Organisational behaviour strives to meet both the demands of its workers and the goals of the
company.

1.4.Determinants of OB
People, structure, technology, and the environment in which the organisation functions are the
essential determinants in organisational behaviour. An organisation, like any other operational
entity, is made up of options or components that make it possible for an organisation to manage,
and these are as follows:

 People: The underlying social structure of the organisation is made up of people. They are
made up of individuals and groups. Formal or informal groups might exist.
The internal and social system of the organisation is made up of people. They are made up
of individuals and groups. Groups might be large or tiny, formal or informal, and official or
unofficial. Groups are ever-changing. They work inside the organisation to achieve their
goals.

 Structure: Structure defines the formal ties between individuals in organisations. This term
refers to the formal relationship that exists between persons in an organisation. Different
individuals in the organisation execute different types of jobs, and they must be connected
in some structural way so that their work may be properly coordinated.

 Technology: Technology encompasses physical things, actions and methods, information,

and so on, through which employees complete their jobs in order to achieve organisational
goals. Technology, such as machines and work process, provides the resources with which
people work and has an impact on the activities that they do. Working interactions are
greatly influenced by the technologies utilised. It enables individuals to perform more and
better work, but it also limits them in a variety of ways.

 Environment: The external environment in which all organisations function is referred to as

the "environment." It is part of a broader system that includes the government, the family,
and other organisations. All of them interact in a complicated system that provides an
environment for a group of individuals. All organisations within a larger context. It is a
component of a larger system that includes several components. This includes suppliers,
customers, rivals, and so on.

1.5.Functions of OB
A. Understanding Human Behavior
Organizations are made up of individuals, and they wouldn't exist without them. Managers must first
comprehend the individuals who make up the organisations in which they work if they are to grasp
the organisations in which they operate. Human behaviour can be studied from the perspective of
the following four levels: individual, group, organisational, and global. Organizational behaviour is
the instrument that assists managers in understanding human behaviour in all directions in which
the human beings interact.
 Individual Behaviour: Individual behaviour is the primary subject of behavioural sciences. It
makes an effort to explain why and how someone acts in a certain way in a particular
circumstance. A variety of psychological, social, and cultural factors influence how people
behave. Integrating these elements will aid in better understanding human behaviour,
according to organisational behaviourists.
 Interpersonal Behaviour: Additionally, behavioural sciences offer tools for comprehending
interpersonal behaviour in workplace settings. Two-person relationships are inevitable in
organisations. Man's most instinctive attempt at socialisation is interpersonal interaction.
Managers can better understand themselves and others by studying behavioural sciences.
Additionally, this will help to strengthen interpersonal relationships. The methods typically
employed for analysing interpersonal behaviour include role analysis, transaction analysis,
and study of perception.
 Group Behaviour: A person behaves differently as a part of the group than as an individual,
according to Hawthorne studies. His actions frequently change in response to group norms.
The performance is impacted synergistically by group behaviour. The organisational process
is researched along with group formation, behaviour, and interactions. Group dynamics can
be used by management to improve teamwork, leadership, and morale.
 Intergroup Behaviour: Organizations are made up of many different groups, which makes
interactions more complicated. Understanding the dynamics of the group is crucial for
managers. Group collaboration, coordination, and conflicts have an impact on group
performance. Through interaction, member rotation, avoiding win-lose scenarios, and
focusing on overall group objectives, organisational behaviour assists managers in fostering
cooperative group relationships.

B. Influencing People's Behaviour:

Managers can affect behaviour by exercising control and giving instructions. The manager's next task
is to influence behaviour in an organisation after having gained an awareness of how people behave
there. This involves getting people to act in a way that meets the criteria necessary to achieve
organisational goals.

 Leadership: Leadership aids management in aligning employee behaviour with

organisational needs. A company's survival and expansion depend on having strong
leadership. An organisation consistently accepts leadership theories to ensure the success of
its operations. For the development of leadership, there are techniques based on traits,
objectives, and situations. Only the correct kind of leadership can help an organisation
succeed. A capable leader maximises the utilisation of both physical and human resources in
order to accomplish organisational goals. The link between individuals, groups, and
numerous other organisational components is provided by leadership.
 Motivation: For continual labour to occur in an organisation, motivation is necessary. People
labour for a variety of reasons, including financial gain and occupational happiness. In an
organisation, a manager's responsibility is to use others to accomplish goals. His ability to
 inspire his staff to contribute to organisational objectives will determine how well he
performs in his position. Organizational behaviour aids managers in comprehending the
wants and needs of subordinates as well as other elements that influence their motivation.
Awards, both monetary and non-monetary, are given as incentives to encourage
subordinates.
 Communication: Communication is the means by which people interact with one another,
making it the foundation of any organisation. Effective communication is a requirement for
organisational effectiveness. The study of behaviour assists in enhancing organisational
communication. Behavioural sciences assess the communication process and how it
functions in interpersonal dynamics. Organizational behaviour examines the variables that
influence communication in order to improve its effectiveness.
 Organizational Development and Change: The change and growth of individuals depend on
the development of the organisation. Because of social, technological, political, and other
environmental variables, organisations must evolve. The application of behavioural science
knowledge facilitates the management of organisational transformation and development.
Group dynamics and good staff education can be used to introduce change. This is done with
the help of excellent communication. All those who are likely to be impacted by the change
should be informed and the benefits of the change should be emphasised.
 Administrative Climate: The totality of all organisational circumstances that have an impact
on behaviour can be summed up as organisational climate. Organizational behaviour takes
into account the entire organisational climate rather than focusing only on enhancing the
physical workspace or raising employee happiness by altering a single work function. The
development of an environment that fosters successful management, the possibility of
achieving personal objectives, positive relationships with coworkers, and a sense of
accomplishment is known as the "organisational climate." Thus, organisational environment
adopts a systems approach and influences behaviour in people. Organizational behaviour
fosters a culture of collaborative leadership, two-way dialogue, adequate pay, and improved
tools for the task.

Summary
The study and use of information regarding how people, groups, and individuals behave in
organisations is known as organisational behaviour. It accomplishes this by using a systemic strategy.
In other words, it considers the entire person, entire group, entire organisation, and entire social
system when interpreting relationships between people and organisations. By attaining individual,
organisational, and social objectives, its goal is to foster healthier relationships. OB covers a wide
range of subjects, including teamwork, leadership, teams, change, and human behaviour. It is
impossible to overlook how organisational behaviour affects both individuals and organisations. The
study of organisational behaviour is crucial for the smooth and effective operation of enterprises.

UNIT 2: CONCEPT OF INDIVIDUAL BEHAVIOR: PERSONALITY AND PERCEPTION

Objectives
At the end of this unit, you will be able to:
 Understand concept of personality
 Understand various determinants and theories of personality
 Understand the concept of perception
 Understand the factors influencing perceptions
 Understand the errors and managerial implication of it
Introduction
Personality and perception both play a role in how people interact with one another and with their
work. Managers will gain an understanding of how group dynamics, interpersonal conflict, and
unfairness in the workplace can be influenced by selective attention, stereotypes, and other
attitudinal distortions, and how these can be produced. When managers have a firm grasp on the
principles of social identity theory, perception, and personality, they are more equipped to manage
and make the most of diversity, coach people and teams, and reduce stress in the workplace.

2.1 Concept of Personality

 “Personality is the relatively stable set of psychological attributes that distinguish one
“person from another.” — Lawerence Ervin
 A distinct manner of thinking, feeling, and doing that defines a person's personality.
Personality encompasses moods, attitudes, and opinions, and is most evident in interactions
with others. It encompasses both natural and acquired behavioural qualities that identify
one person from another and can be noticed in people's interactions with the environment
and social groups. The term personality has been defined in a variety of ways, but as a
psychological construct, it has evolved into two basic meanings. The first is concerned with
people's constant differences: in this sense, personality research focuses on identifying and
understanding relatively stable human psychological features. The second interpretation
highlights the features that unite all individuals and separate psychological man from other
species; it urges the personality theorist to look for the regularities that characterise man's
nature as well as the elements that impact the course of his life among all people. This
duality may explain the two directions in which personality research has gone: on the one
hand, the study of ever more specific qualities in people, and on the other, the search for an
organised totality of psychological functions that emphasises the interplay between organic
and psychological events within people and the social and biological events that surround
them.
 A person's (or thing's) personality is a set of characteristics that distinguishes them from
others. Personality is the sum of all a person's characteristics, including their behavioural,
temperamental, emotional, and mental characteristics. The whole of someone's attitudes,
interests, behavioural patterns, emotional responses, social roles, and other individual
features that persist through time are referred to as personality.
 An individual's personality is unique, personal, and a primary factor of his behaviour.
Individuals respond to different events in different ways due to variances in personality .
Some personality theorists highlight the need of recognising the person-situation
interaction, i.e., personality's social learning components. The study of human behaviour
would benefit greatly from such an interpretation.
 The word personality comes from the Latin word person, which means "to speak through."

Personality Characteristics

 Consistency: Behaviours have an identifiable order and regularity to them. People, in

general, behave in the same or similar ways in a variety of situations.
 Psychological and physiological: Personality is a psychological construct, but research reveals
that biological processes and requirements can impact it.
  Behaviours and actions: Personality influences not just how we move and respond in our
environment, but it also drives us to behave in specific ways.
 Multiple expressions: Personality is expressed in a variety of ways, not just through conduct.
It shows up in our thoughts, feelings, close relationships, and other social interactions as
well.
 Personality is something that each person possesses in their own way: Personality
encompasses both internal and external characteristics, some of which are quite general.
However, it is unique to each person. It is impossible for anyone else to duplicate or imitate
the qualities of the individual's personality.
 Personality refers to an individual's enduring qualities: everyone has certain feelings as well
as other permanent traits and qualities. Personality is mostly made up of persistent or
permanent characteristics that manifest themselves in the form of social behaviour and an
attempt to adapt to the surroundings.
 Personality is a dynamic orientation of an organism to its environment: it also represents the
learning process. It occurs in the context of the environment. We don't develop all of our
personality features at the same time.
 Social interactions have a significant impact on one's personality: personality is not an
individual trait. It's the outcome of social contact. To put it another way, as we interact with
other members of society, we acquire certain characteristics while displaying others. All of
these factors combine to build a person's personality.

2.2 Determinants of Personality

Different thinkers have highlighted several personality determinants. McClelland, for example, has
divided them into four basic theories: I) traits, (ii) schema, (iii) motives, and (iv) self-schema.
Others, such as Scott and Mitchell, have divided personality determinants into groups based on
heredity and cultural factors.
Various theories propose various variables that influence an individual's personality. The
identification of self-concept is Freud's most well-known research project. Self-concept is made up of
elements (variables) that come from nature, such as genes and biological formations, as well as
things that come from nurture, such as social and environmental factors. Heredity, environment,
and situation are the three major factors of personality.
However, the numerous personality factors can be divided into three categories: I heredity, (ii)
environment, and (iii) situation. These are now described in more detail below:
1. Heredity Factors
The factors that are determined at conception are referred to as heredity. As a result, the term
"heritance" refers to biological factors. Heredity is the biological process by which qualities are
passed down from parents to children through the chromosomes of germ cells. Physical stature,
facial attractiveness, temperament, sex, muscle composition, and biological rhythms are
examples of heredity traits influenced by one's parents.

The factors that predispose to certain physical, mental, and emotional states are referred to as
heredity. It determines an individual's outer limits. It also restricts the range of character
development. The arrangement and structure of genes in the chromosomes is passed down
from generation to generation in the range of 20% to 50%. According to the studies, twins who
were raised in different places have similar personalities.
Thus, heredity is the transmission of traits from an ancestor to a descendant via a mechanism
primarily based in the genes. There are numerous achievers in their fields, such as Sachin
Tendulkar, U.R. Rao, N.R. Narayana Murthy, Former Prime Minister P.V. Narasimha Rao, who
gave the Indian economy a new lease on life, and many others. To some extent, the
performance of these high achievers is influenced by hereditary factors.

2. Environment Factors

The environment refers to the overall surroundings in which people are raised and brought up.
Culture, family, upbringing in society, and experiences are all environmental factors that
influence the formation of personality. The confrontations with family members, relatives, and
friends, as well as the social groupings to which they belong, are discussed. Culture aids in
identifying behavioural similarities and differences.
The individual's upbringing, the family's social and economic standing, and the family's size are
all factors in the family environment.
The society moulds a person's personality by forcing them to play various roles. Hereditary
features are often strengthened or weakened by the environment. When a person interacts with
the environment through speaking, for example, his speech organs ensure that he or she is
learning to speak.
There is evidence to suggest that the cultural milieu in which people are reared has a significant
impact on personality development. Children in India, for example, are taught the values of hard
work and family closeness from an early age. Males and ladies are expected to behave
differently in Indian society. Children reared in orphanages or in non-stimulating environments
are far more likely to be socially and emotionally maladjusted than children raised by loving
parents in a stimulating environment. In comparison to other family members, research
investigations have demonstrated that parents have an impact on their children's personality
development. Siblings (brothers and sisters) have an impact on personality development in
addition to parents. Elders serve as role models for younger people.

3. Situation
Without a question, inheritance and environment are the fundamental determinants of
personality, but the effects of heredity and environment on personality are also influenced by
situation. In practise, a person's personality can shift depending on the circumstances. This is
due to the fact that different situations necessitate different components of one's personality.
For example, the same person behaves considerably differently in two different situations:
during an employment interview and while enjoying a picnic with friends in a public park.The
situation necessitates specific actions. Various psychologists have found which personality traits
are important for a person's job. Individuals' ability to manage their behaviour in various settings
determines whether they are successful or unsuccessful. An applicant attending an interview, for
example, may exhibit only a few characteristics. The other characteristic or behaviour is hidden
or not displayed.

2.3 Theories of Personality

 1. Sigmund Freud’s Psychoanalytic Theory
Sigmund Freud established the psychoanalytic theory of personality development, arguing that
personality is produced by conflicts between three fundamental elements of the human mind: the
id, ego, and superego. Human behaviour is the outcome of interactions among three component
components of the mind: the id, ego, and superego, according to Sigmund Freud's psychoanalytic
theory of personality. The role of conflicts among the elements of the mind in shaping behaviour and
personality is emphasised in this "structural theory" of personality. The majority of these
confrontations are unspoken. According to Freud's psychosexual theory of development, personality
develops during childhood and is critically influenced through a succession of five psychosexual
stages. A child faces a conflict between biological drives and societal expectations at each stage;
successfully navigating these internal conflicts leads to mastery of each developmental stage and,
eventually, to a fully mature personality. Because of his single focus on sexuality as the primary
engine of human personality development, Freud's beliefs have since been criticised.
The Structure of the Human Mind by Sigmund Freud
Our personality, according to Freud, emerges from interactions between the three essential
structures of the human mind: the id, ego, and superego. Conflicts between these three structures,
as well as our efforts to establish a balance between what each of them "desires," shape how we act
and interact with the world. How we resolve the tension between two overarching behavioural
tendencies: our biological aggressive and pleasure-seeking drives vs. our socialised internal control
over those impulses depends on the balance we strike in any given situation.

1. The Id
The id, the oldest of the three structures, is preoccupied with satisfying basic physical demands
and urges right away. It works completely subconsciously (outside of conscious thought). If your
id passed a stranger eating ice cream, it would most likely take the ice cream. It doesn't know or
care if taking someone else's belongings is impolite; all it cares about is that you want the ice
cream.

2. The Superego
The superego is concerned with societal standards and morality, and is often referred to as one's
"conscience" or "moral compass." It develops as a youngster learns what is considered right and
bad in their culture. If your superego passed by the same stranger, it would not accept their ice
cream since it would be impolite. If your id and superego were both involved, and your id was
strong enough to overrule your superego's worry, you would still eat the ice cream, but you
would most certainly feel guilty and embarrassed afterward.

3. The Ego
The ego is the intellectual, pragmatic element of our personality, in contrast to the instinctual id
and the moral superego. It is less primal than the id, and it is split between conscious and
unconscious states. It's what Sigmund Freud referred to as the "self," and its role is to balance
the id and superego's demands in the real world. So, if you went past the stranger with the ice
cream one more time, your ego would arbitrate the disagreement between your id (“I want that
ice cream right now”) and superego (“It's bad to take someone else's ice cream”) and decide to
go out and buy your own.
 While waiting 10 minutes might irritate your id, your ego decides to make that sacrifice as part
of the compromise, allowing you to satisfy your ice cream craving while avoiding an awkward
social scenario and associated emotions of shame.

2. Trait Theories -Gordon Allport Model

The Trait Approach to Personality
Psychologists have long disagreed about how to define and describe personality. The trait theory of
personality is one of these essential concepts. Human personality is made up of a number of broad
qualities or dispositions, according to trait theory.
Some of the first characteristic theories attempted to characterise each and every trait that might
possibly exist. For instance, psychologist Gordon Allport discovered that there are over 4,000 words
in the English language that can be used to characterise personality traits. While this method was
effective at identifying many types of features, it was cumbersome and difficult to apply. Many of
these qualities, for example, are extremely similar, making it difficult to tell them apart. It's also
tough to research these personality qualities because of the ambiguity.
Gordon Allport was one of the first trait theorists of the modern era. Allport and Henry Odbert
collected roughly 18,000 personality-descriptive words from two of the most comprehensive
dictionaries of the English language available. They narrowed the list down to about 4,500
personality-descriptive adjectives that they judged to express observable and relatively enduring
personality characteristics. Allport categorised these characteristics into three levels:
Cardinal traits: such as Ebenezer Scrooge's greed or Mother Theresa's altruism, control and
determine an individual's behaviour. They are known as the individual's master control since they
are at the top of the hierarchy. They are thought to be a person's dominating passions. Although
cardinal traits are powerful, only a small percentage of people's personalities are dominated by a
single trait. Rather, our personalities are made up of a variety of characteristics.
Central traits: The hierarchy continues with central traits. These are general features that everyone
possesses to varied degrees (such as loyalty, kindness, agreeableness, friendliness, sneakiness,
wildness, or grouchiness). They are the fundamental building blocks that shape the majority of our
actions.
Secondary traits: are found at the bottom of the hierarchy and are less evident or consistent than
central traits They're plentiful, but only in certain situations; they contain preferences and attitudes,
for example. These secondary characteristics explain why a person's behaviour can be inconsistent
with their regular behaviour at times. A nice person, for example, becomes enraged when others try
to tease him; another is not apprehensive but always feels nervous speaking in public.
Internal and external forces, which Allport refers to as genotypes and phenotypes, are thought to
influence an individual's behaviour and personality. Genotypes are internal forces that influence
how a person retains information and interacts with the outside world. External forces that influence
how an individual accepts his or her surroundings and how others influence his or her conduct are
referred to as phenotypes.

3. Trait Theories - Cattell’s Model

Many hypotheses have been explored to explain how personality develops and influences
behaviour. Raymond Cattell, a psychologist, proposed one such idea. He developed a taxonomy of
16 separate personality qualities that might be utilised to define and explain individual personality
variances.
The Sixteen Personality Factor Questionnaire (16PF), based on Cattell's personality characteristics, is
frequently used in school today for career advice. It is used in business for human selection,
particularly for selecting managers. Raymond Cattell took Allport's 4,500 trait list and deleted all the
synonyms, lowering the total to 171 in an effort to make it more understandable. However,
categorising a feature as present or missing does not adequately reflect a person's individuality
since, according to trait theorists, all of our personalities are made up of the same traits; the only
difference is the degree to which each trait is manifested.
To get a complete picture of personality, Cattell believed it was important to sample a wide range of
characteristics. The first sort of data was life data, which entails gathering information from a
person's natural daily activities. Experimental data is used to measure responses to standardised
experimental conditions, whereas questionnaire data is used to collect responses based on an
individual's introspection about his or her own behaviour and feelings. Cattell used this information
to create sixteen dimensions of human personality traits using component analysis. He created the
16PF personality assessment based on these 16 elements. Rather than a quality being present or
absent, each dimension is graded on a scale from high to low. Your level of warmth, for example,
reflects how warm, compassionate, and nice you are to others. If you have a low score on this scale,
you are likely to be cold and distant. A high score on this metric indicates that you are reassuring and
supportive. Cattell's 16PF theory has been critiqued for being too wide, while drastically reducing
Allport's list of qualities. The following list of personality traits defines some of the terminology used
to characterise each of Cattell's 16 personality characteristics.
 Abstractedness: Imaginative vs. practical abstractness
 Apprehension: Worried vs. confident apprehension
 Dominance: Forceful vs. submissive dominance
 Emotional stability: Liveliness, calm vs. high-strung
 Liveliness: Restraint vs. spontaneity
 Openness to change: Adaptability vs. clinging to the familiar
 Perfectionism: Controlled vs. undisciplined perfectionism
 Privateness: Discreet vs. openness in terms of privacy
 Reasoning: Abstract vs. concrete reasoning
 Rule-consciousness: Non-conforming versus Conforming
 Self-reliance: Self-reliance is the distinction between being self-sufficient and being
dependent.
 Sensitivity: Tender-hearted vs. tough-minded sensitivity
 Social boldness: Uninhibited vs. shy social daring
 Tension: Tension: Inpatient versus unconcerned
 Vigilance: Suspicious vs. trusting vigilance
 Warmth: Outgoing vs. restrained warmth

4. Big Five Personality Factors

In the scientific community, the Big Five (also known as the Five Factor) model of personality is the
most frequently accepted personality theory. The model suggests that human personality may be
measured along five major characteristics, each of which is different and independent of the others.
OCEAN or CANOE, both acronyms for the five qualities, are other names for the Big Five concept.
The Big Five personality qualities are frequently used by human resource experts to assist in the
placement of personnel. This is due to the fact that these dimensions are thought to be the
fundamental characteristics that make up a person's total personality. Extraversion (sometimes
called extroversion), agreeableness, openness, conscientiousness, and neuroticism are the Big Five
personality traits. Each attribute is a part of a larger continuum. For each trait, people can fall
anywhere along the spectrum. Throughout most of one's life, the Big Five remain quite stable. With
an estimated heritability of 50%, they are influenced extensively by both genes and the
environment. They've also been shown to predict major life events like education and health.
The Big Five personality traits are classified under:
 Openness
 Conscientiousness
 Extraversion
 Agreeableness
 Neuroticism

1. Openness

The readiness to try new things as well as engage in imaginative and intellectual activities is
referred to as openness to experience. It entails being able to "think outside the box."
People who appreciate learning new things and experiencing new things have a high level of
openness. Being intelligent and imaginative, as well as possessing a diverse set of interests,
are examples of openness.

2. Conscientiousness

Conscientiousness refers to a person's capacity to manage their impulses and engage in

goal-directed conduct. It assesses aspects of behaviour such as control, inhibition, and
persistence.
People with a high level of conscientiousness are dependable and prompt. Being organised,
methodical, and thorough are characteristics.

3. Extraversion

The inclination and intensity with which a person wants engagement with their
surroundings, particularly socially, is referred to as extraversion. It includes people's levels of
comfort and aggressiveness in social situations. It also indicates the energy sources from
which someone gets their energy. Introverts derive their energy from within, whilst
extraverts obtain their energy from connecting with others. Extraversion encompasses
characteristics such as being active, chatty, and forceful.

4. Agreeableness

The term "agreeableness" refers to how people approach interpersonal relationships. Unlike
extraversion, which is concerned with relationships, agreeableness is concerned with people's
attitudes and interactions with others. These people are nice, helpful, and compassionate. People
who are less likeable are more likely to be distant. Kindness, affection, and sympathy are among the
traits.

5. Neuroticism
Neuroticism is a personality trait that indicates a person's overall emotional stability based on how
they view the world. It considers how likely a person is to perceive circumstances as dangerous or
challenging. It also includes a person's proclivity for unpleasant feelings. Emotional Stability is
another name for neuroticism. This dimension has to do with one's emotional stability as well as the
intensity of negative feelings. Emotional instability and unpleasant feelings are common in people
who have a high neuroticism score. Mood swings and tension are two characteristics.

5. Self Theory

The Self-Theory focuses on an individual's set of self-perceptions, as well as his perceptions of his
interactions with others and other areas of life. Carl Rogers made a substantial contribution to the
self-theory.
The self-theory is made up of four components, which are described below:
1. Self-Image: What an individual thinks about himself is referred to as self-image. Everyone
has specific views about themselves, such as who or what they are; these beliefs contribute
to a person's self-image and identity.According to Erikson, identity is developed through a
lifelong process that is largely unnoticed by the individual and society, i.e., an individual's
image of himself is constructed unconsciously in response to social conditions.
2. Ideal-Self: The ideal-self is the person who one wishes to be. It differs from self-image in
that it depicts an individual's ideal position, whereas the self-image depicts the reality that
an individual observes. As a result, there may be a discrepancy between the two.The ideal
self serves as a motivator for an individual to engage in activities that are consistent with his
ideal self's traits.
3. Looking-Glass-Self: An individual's view of how others perceive his attributes or feel about
him is referred to as the looking-glass self. Simply put, it is the perception of others'
perceptions of you, i.e., seeing yourself through the eyes of others rather than seeing
yourself as you are.
4. Real-Self: When it comes to your self-image, the real-self is what others present you. When
others react to him and express their views or perceptions about how they really feel about
him, it confirms his self-image. This is interpreted as environmental input that aids an
individual in adjusting his self-image to match the cues he has received.

2.4 Measurement of Personality

Like others, psychologists have been interested in the measurement of personality since its
origins as a scientific profession. A vast range of refined and sophisticated methods of assessing
human personality have been developed over time. Along with it, the desire to establish
scientifically acceptable and trustworthy measurement procedures has grown. The field of
personality assessment is not without dispute. Many unresolved disagreements and discussions
have erupted over various problems relating to personality measurement. There are numerous
approaches for determining a person's personality. The following are a few of these strategies,
which we will cover briefly.
1. Interview
An interview can be characterised as a face-to-face talk with a specific aim in mind. Clinical
psychologists, educational psychologists, and vocational counsellors are the most common users of
the interview method of measuring personality. There are many various kinds of interview methods.
The structured interview and the unstructured interview are the two main forms of interviews.
Standardized questions are used in structured interviews. The interviewer is limited in what
questions he or she can ask. When precise measurement and quantification are necessary, a
structured interview is commonly used. In a structured interview, present questions are asked, with
highly specific responses. An open interrogation is an unstructured interview. The interviewer asks
the subject or interviewee any question he or she wants on any topic that is relevant to the
situation. In this interview, you can give detailed replies, and the grading is often subjective.
Interviews are a versatile tool that may be utilised with a wide range of people. The interview
method has been chastised for being very subjective, unreliable, and invalid. The interviewer's
personal attributes may have an impact on the outcomes. It takes too much time and can be costly
at times. The interview must also be conducted by someone who is well-trained and competent.

2. Questionnaire

A questionnaire is a tool for gathering information about a person. The term "questionnaire" refers
to a method of obtaining responses to questions by having the respondent fill out a form.

It is a simple approach of gathering information on a person's personality. The design of a

questionnaire is critical. Simple, straightforward, and self-explanatory format and language are
required.

3. Rating

Another approach of analysing a person's personality is to use a rating scale. Using this strategy, the
investigator tries to figure out what a person is like through his activities. Experts or important
people are requested to make a decision or estimate the degree to which the subject possesses a
specific trait.
An expert, a parent, a teacher, a peer, or any other relevant individual can rate others. Even a
person can rank himself.
Rating scales are effective for determining what impact an individual has made on those with whom
he has had close contact about a particular aspect of his behaviour. Teachers, counsellors,
academicians, employers, supervisors, parents, and others use rating scales in a variety of situations.
A rating scale has been designed for analysing a wide range of personal characteristics such as
leadership, tactfulness, cooperation, industriousness, honesty, emotional maturity, and so on.
Absolute rating scales and relative rating scales are the two types of rating scales. These two scales
can be subdivided further.

4. Projective Techniques
One of the most commonly used and significant tests in clinical work is projective procedures or
tests. They were mostly developed in a clinical setting and have remained useful tools for clinicians.
Some have originated from therapeutic treatments used with psychiatric patients, such as art
therapy.
Though projective techniques have been utilised for a long time, an article by L. K. Frank titled
"Projective Methods for the Study of Personality" helped to popularise them. The greatest boon to
projective methods came in 1921, when Herman Rorschach published a study describing a strategy
for determining patterns of behaviour from an individual's vocal replies to a set of ten inkblots.
Today's projective methods literature is extensive, with over 4,000 references on Rorschach alone.
Projective approaches are widely employed in many aspects of applied psychology, from hospitals
and clinics to personnel selection and career counselling.
A series of approaches known as projective techniques is used to investigate both intellectual and
non-intellectual components of personality. In these tests, the user is given an unstructured or
ambiguous task, such as a picture, inkblot, or incomplete statement, which allows for a wide range
of interpretations.
The main premise of projective tests is that an individual's interpretation of the assignment would
project his typical mode of replies, personal motives, feelings, and desires, allowing the examiner to
gain a better understanding of more subtle aspects of his personality.
Projective approaches come in a range of shapes and sizes. The Rorschach Inkblot Test and the
Thematic Apperception Test are the two most prominent representative tests of projective
approaches. The word-association or free-association test, as well as sentence completion tests, are
two other well-known projective tests.

(a) The Rorschach Inkblot Test: Herman Rorschach developed it in his monograph
"Psychodiagnostics" in 1921. In the same year, he passed away. Emil Oberholzer, Waller
Morgenthaler, and George Roemer, his associates, were instrumental in popularising the exam.
Rorschach is one of the most commonly used, popular, highly criticised, and well-researched tests
today. Multiple test administration, scoring, and interpretation methods have been developed as a
result of various improvements in this test.
The Rorschach test consists of ten cards with symmetrical inkblots on both sides. The black cards are
half of the deck, while the coloured cards comprise the other half. The cards are given to the
subjects in a specific order. The test's score is highly subjective. Several scoring categories for the
Rorschach test have been developed, but the most commonly scored categories are location (i.e. the
area of the blot that has been perceived by the subject on the basis of live response), determinant
(i.e. a characteristic of the inkblot as perceived by the subject), content (what is actually seen by the
subject), original or popular (this category tells us whether the subject has seen something similar
before), and original or popular (this category tells us whether the subject
The Rorschach test is made up of 10 inkblots that Herman Rorschach made by dripping ink on paper
and folding it over to make a symmetrical design. The inkblots are shown to the participants during
the exam, and they are asked to describe each one. After that, the test administrator asks questions
concerning the responses, such as where area of the inkblot corresponds to which response. This
test is supposed to measure unconscious attitudes and motivations and can be used to examine a
person's personality characteristics and emotional functioning.
The Rorschach test has gotten a mixed response. Some have viewed it as a kind of personality X-ray,
an essential diagnostic tool, while others have viewed its use as unethical. Researchers have
continuously painted a negative picture of Rorschach, despite the fact that clinicians are increasingly
employing this test.
(b) The Thematic Apperception Test (TAT): The TAT, invented by C. D. Morgan and Henry A. Murray
in 1935 as a method to examine unconscious ideas and fantasies, is the only other projective
technique that has come close to the Rorschach method in terms of popularity and research.
A blank card and 30 photographs make up the TAT test. The images were chosen and labelled in
such a way that there are four sets of 20 cards, one for boys, one for girls, one for males, and one for
ladies above the age of 14. The testing procedure is separated into two sessions, each of which
should have no more than 10 TAT cards administered, with at least one day between the two
sessions.
Practical factors have recently led to a reduction in the number of cards issued. Most testers now
use only one session and offer the subject with 8 to 12 cards. The respondent is given the cards one
at a time and asked to tell a storey about the image that describes the portrayed situation, what led
up to it, what the characters in the image are thinking, and what the outcome will be.
Although the TAT is most commonly given as an oral test in clinical settings, it can also be given in
writing or as a group test.
Like the Rorschach test, the TAT test offers different scoring systems. The three most often used TAT
scoring systems are as follows:
 Murray’s scoring system (Non-quantitative)
 McClelland’s system (quantitative) and
 Eron’s system (quantitative).
Many modifications to the original TAT test have been developed since its initial publication. The
Children's Appreciation Test is one such modification (CAT).

(c) The Word Association Test: Carl Jung was the first to methodically construct the free-
association exam, which was initially known as the free-association test. Kent and Rosanoff later
utilised it for mental screening. The word association test has been around for a long time. A total of
100 words were used in Jung's word association test. Rapaport and his colleagues created a word-
association test with a list of 60 terms in 1968. Kent and Rosanoff devised a 100-word word-
association test to distinguish between mentally ill and healthy people.
In the word association test, the subject is told that the examiner will utter a succession of words,
one at a time, and that he or she (the subject) should say the first word that comes to mind, with no
right or incorrect answers.
The examiner then keeps track of the response to each of his words, as well as the reaction time and
any atypical speech or behaviour manifestations that may accompany a certain response. The
subjects provide information that can be used to assess a person's personality.

(d) Sentence Completion Test: The individual is presented with a series of incomplete sentences,
most of which are open at the conclusion, that he must complete in one or more words. They're
similar to a word association exercise. Sentence completion tests, on the other hand, are seen to be
superior to word association tests since the subject can react with more than one word, there is
more flexibility and variety of responses, and more aspects of personality and experience can be
accessed.
The following are a few of the most regularly utilised sentence completion tests:
  The Sack Sentence Completion Test
 Rotter's Incomplete Sentence Blank and Rotter's Incomplete Sentence Blank
 The Sentence Completion Test at Washington University.

5. Situational Tests
During World War II, the term "situational test" gained prominent. During World War II, the
United States Office of Strategic Services (OSS) devised and employed these tests to a large
extent. Situational tests are made up of real-life scenarios in which pupils are required to
accomplish specific tasks.
The subject's performance and behaviour in such scenarios allows us to better grasp his or her
personality. In a situational test, the subject's behaviour is assessed by a panel of qualified
judges or, in some situations, his peers. A wide range of situational tests were used in this study.
The situational stress test is one such examination that examines an individual's behaviour in
stressful, frustrating, or emotionally disrupting situations.
Another situational test is a group conversation without a leader. In such tests, a group of
examinees must work together, with none of them being identified as a leader or given specific
responsibilities based on the subject's responses and interpersonal interactions. The researcher
or observer takes note of the group members' personality traits as well as the formation of
leadership in such a leaderless group. The Office of Strategic Services employs a number of other
situational tests. These tests are referred to as OSS tests. These tests were designed to assess a
candidate's personality and provide an accurate prediction of its suitability for various military
duties.

6. Personality Inventories
Personality inventories are another approach for assessing an individual's personality. They
consist of statements, items, or questions to which the subject must respond. The responses are
quite specific and well-structured. Personality inventories address not only the individual's
outward behaviour, but also his feelings about himself, other people, and his surroundings,
which are a product of his unique biological make-up as well as the effects of his
experiences.The “trait approach” to personality investigation is commonly used in personality
inventories. It is attempted to quantify the presence and strength of these characteristics.
Personality inventories are assessments that are designed to look at one or more distinct, well-
defined aspects of a person's personality. Second, the personality inventory's questions are
often phrased in the first person.
Minnesota Multiphasic Personality Inventory (MMPI), established by J. C. Mckinley and S. R.
Hathaway, the Bell Adjustment Inventory, Edward's Personality Preference Schedule, and others
are some of the most well-known personality inventories.

2.5 Implications of Personality for management

MEASUREMENT OF ORGANIZATIONAL LEVEL PERSONALITY

This study evaluates multiple managers within the same organisations, which performs better than
simple individual level-analysis. The researchers can thus determine two crucial facts as a result. The
first is an estimate of the typical range (or "variance") of a personality trait among managers inside
the organisation, and the second is the average level of that personality trait among the
organization's managers. Researchers can assess whether certain sorts of individuals perform better
at certain firms after analysing these two metrics. Do "extraverted organisations" perform better
than "introverted organisations," for instance?
6,709 managers from 71 different companies were polled by the researchers. According to the
findings, companies had higher levels of management work satisfaction and labour productivity
when their managers had high levels of emotional stability, extraversion, and conscientiousness
(measured by revenue per employee).
Several intriguing findings were observed when the variance or "typical spread" of the personality
characteristic was taken into account along with the average levels of the personality traits. Job
satisfaction, labour productivity, and financial success (measured by return on equity) were all
greater in organisations with stronger emotional stability; this effect was even more pronounced
when there was less variation across managers (in other words, managers were more similar on
emotional stability).
Additionally, managers that were more alike on extraversion had better financial success, which was
also related to higher extraversion.
When there was greater diversity, or when managers were more dispersed on the relevant
personality trait, the relationship between openness to experience and agreeableness and labour
productivity and financial performance was stronger.

IMPLICATIONS FOR THE ORGANIZATION

This study demonstrates the link between personality and organisational effectiveness, particularly
in managers who are emotionally stable, extraverted, and diligent. In general, findings indicate that
homogeneity is desirable; in other words, outcomes were better when managers displayed roughly
the same levels of the personality trait. The authors interpret this to suggest that firms may want to
think about choosing workers who exhibit these characteristics as well as work to develop a
distinctive organisational profile that could entice desired workers to initially join the company and
later stay as long as possible.
The overall principle and viability of hiring staff based on personality type is further advanced by this
study. Compared to research that focus on performance ratings and explore specific individuals, the
data in this study may be more persuasive. The current writers increase the appeal of personality-
based selection by employing aggregated organizational-level personality traits and linking them to
the most concrete indicators of organisational success.

2.6 Concept of Perception

The sensory experience of the world is referred to as perception. It entails both recognising
environmental stimuli and taking action in response to them. We obtain knowledge about the
features and aspects of the environment that are crucial to our existence through the perceptual
process. Perception not only creates our experience of the world around us; it allows us to act within
our environment. Touch, sight, sound, smell, and taste are the five senses that make up perception.
It also contains proprioception, a combination of senses that allows you to notice changes in your
body's posture and movement. It also includes the cognitive processes that are required to analyse
information, such as recognising a friend's face or smelling a familiar odour
“A process through which individuals arrange and interpret their sensory experiences in order to
give meaning to their environment” is another definition of perception. The process through which
an individual picks, organises, and interprets stimuli into a meaningful and coherent picture of the
world is known as perception. Perception is the cognitive process of converting sensory stimuli into
useful information. It is the process of mentally evaluating something we see or hear in order to
later judge and render a judgement on a situation, person, or group.
Different people have different thinking styles, beliefs, feelings, and goals, and practically everyone
acts in accordance with them. Because of these characteristics, different people interpret the same
things differently.
For some, something is correct, while for others, it is completely incorrect. It all comes down to how
you approach things, what your point of view is, and how you view things. This is a matter of
perception.
It is an individual's point of view through which he or she understands a circumstance. Perception is
described as the process through which information enters the mind and is interpreted in order to
give the world some sense. Perception is the mental process of converting sensory input into useful
knowledge. It is the process of mentally analysing something we see or hear in order to judge and
provide a verdict on a situation, person, organisation, or other entity.

It is classified into six types, which are as follows:

 Perception of sound - The ability to recognise vibrations in order to hear sound.

 Perception of speech- Speech competency is the ability to interpret and comprehend the sounds
of language that are heard.

 Perception of touch- Touching an object to identify it by the patterns on its surface.

 Perception of taste- Taste is the ability to recognise the flavour of substances by tasting them
using taste buds, which are sensory organs.

 Perception of other senses- Other senses include balance, acceleration, pain, time, and
sensations sensed in the throat and lungs, among others.

 Perception of social world- It allows people to understand other people and groups in their
social context.

Perception has the following characteristics:

 It is an intellectual process in which a person selects input from the environment, organises
it, and derives meaning from it.
 A cognitive or psychological process that is fundamental. The perception of their
surroundings triggers people's actions, emotions, ideas, and sentiments.
 Perception is the process by which a person assigns meaning to his or her surroundings.
  People's perceptions of their surroundings influence their actions, emotions, thoughts, and
feelings.
 Perception can be defined in a number of ways, but it essentially refers to how a person
perceives the world.
 Perception is a nearly automatic process that works in the same way for everyone, but it
usually results in varied perceptions.
 It is a subjective procedure.

2.7 Factors influencing Perception

There are three types of factors that influence perceptual mechanisms:
 Characteristics of the Perceiver
 Characteristics of the Perceived or target, and
 Characteristic of the Situation

1. Characteristics of the Perceiver

Perception is influenced by a variety of factors, including the perceiver's personality. When a person
looks at a target and tries to figure out what he or she represents, the interpretation is greatly
influenced by the perceiver's personal qualities. The following are the primary features of the
perceiver that influence perception:
 Attitude: Employee attitude and ability have an impact on perception formation. They
directly perceive the stimulus provided by management if they have a positive attitude
toward management. Employees that have negative attitudes are suspicious of
management's approach. Employees with high aptitude have a drive to learn and a growth
mindset. They have a good attitude about an organization's administration.

 Motives: Employees' motives and desires cause them to view stimuli differently depending
on their level and angle. Employees with helpful motives will constantly aid management. If
they want to grow as individuals and as a company, they will see items and situations in a
positive light. Employees with a lack of motivation will not work honestly. Depending on the
motive, the perception will be different.

 Interest: Individual interest attracts increased attention and recognition to stimuli. The
impact of stimuli or items on behaviour is reduced when there is less attention and
recognition. Employees that are uninterested in their work will exhibit less productive
behaviour patterns, and their perception will be poor.

 Experience: Employees' experiences lead to various levels of perception. A youthful

employee spends time learning about the object and the situation. Employees with more
experience are more likely to understand objects quickly and properly. In conflicting
situations, however, it is difficult to correct elderly people, but the young may be quickly
moulded to achieve the organization's goals.

 Expectation: Perceptions are influenced by expectations. People see what they expect to see
when they go to the movies. They become frustrated when the object and situation do not
match their expectations. They are unable to change their ways. Employees may expect
higher remuneration, and as a result, they view management in that light. When there are
expectations present, the genuine stimuli are not effectively received. For accurate
perception, management must evolve expectations.
  Self-Concept: The self-concept of the perceiver is another component that can influence
social perception. A person with a positive self-concept is more likely to perceive favourable
qualities in others. A poor self-concept, on the other hand, can cause a perceiver to pick out
bad features in another person. We can have more accurate perceptions of others if we
have a better awareness of ourselves.

2. Characteristics of the Perceived or target

Characteristics of the seen target can influence how it is perceived. Our opinion of others is heavily
influenced by their physical appearance. Individuals who are extremely gorgeous or unattractive are
more likely to be recognised in a group than those who are average looking. The way we see a target
is shaped by its motion, sound, size, and other characteristics.
 Physical Appearance: Our opinion of others is heavily influenced by their physical
appearance. Physical characteristics of the target, such as height, weight, approximate age,
race, and gender, will be noticed by the perceiver. Physical appearance characteristics that
differ from the norm, are intense, or are new or unusual are more likely to be noticed by
observers.

 Verbal Communication: Targets' verbal communication has an impact on our perception of

them. We pay attention to the issues they discuss, their voice tone, and their accent, and
make decisions based on this information.

 Communication that is non-verbal: Non-verbal communication can reveal a lot about a

person's personality. In order to establish an impression of the target, the perceiver analyses
eye contact, facial expressions, body movements, and posture.Because of our tendency to
group close items and similar things together, we do not look at targets in isolation; the
relationship of a target to its context effects perception.

 Objects: Nearby objects are more likely to be viewed as a group than as individual objects.
We frequently group unrelated items or occurrences together as a function of physical or
temporal proximity.People, objects, and events that have a lot in common are often grouped
together. The higher the degree of similarity, the more likely we are to regard them as a
group.

3. Characteristic of the Situation

Changes in circumstances lead to erroneous perceptions of people. The following factors have an
impact on perception:

 Time: The context in which the perceiver interacts with the target has an impact on the
perceiver's perception of the target.
For example, a person dressed up for a party may go unnoticed, but the same attire in the office
might draw attention, even though the individual has not changed.
 Situation at work: You've probably heard folks remark that their boss is one thing during the day
and another entirely when they're out in public.

 Social setting: Social perception is also influenced by the strength of situational cues. Some
situations convey strong clues as to what is and is not acceptable behaviour. In these cases, we
assume that the situation can explain the individual's behaviour and that it does not necessarily
reflect the individual's temperament. In social perception, this is known as the discounting
principle. For example, you might come across an automobile salesperson who greets you with a
warm and friendly attitude, inquiries about your work and hobbies, and appears genuinely
interested in your car preferences. Is it reasonable to infer that this behaviour represents the
nature of the salesperson? Because of the situation's influence, you probably won't be able to.
This person is attempting to sell you a car, and he is likely to handle all consumers in this manner
in this situation.

2.8 Interpersonal Perception

The social psychology field of interpersonal perception studies the assumptions that people who
interact with one another make about one another. Since this region is interpersonal rather than
intrapersonal and necessitates the interaction of at least two actual individuals, it varies from
social cognition and person perception. Interpersonal perception is a subfield of psychology that
deals with how individuals perceive one another. Because it studies the numerous conclusions
that people draw about others based on verbal and non-verbal clues, this perception theory is
regarded as a crucial component of good communication. Understanding these habits can
frequently help you get positive responses from other individuals. It is necessary to observe at
least two people in order to study this kind of perception. The social psychology subfields of
accentuation and stereotyping are also connected to this theory of perception. Examining
people's tiny movements and minor facial expressions during conversations is one of the earliest
ways to put theories of interpersonal perception into practise. Even when the observer is unable
to hear the parties' actual spoken words, analysing these kinds of behaviours can frequently
reveal a lot about both sides. The relationship between the two people in question and the topic
of their talk are typically communicated through these patterns. Examining elements like bias
and perceived personality is part of studying interpersonal perception. On first contact, many
people have a tendency to categorise other people. These distinctions can be between "friendly"
and "hostile" or "reliable" and "untrustworthy," for example. Initial impressions may not always
be accurate because people tend to form them based on their upbringings and personalities. The
study of how personalities influence various types of assessments is a key subject of
interpersonal perception. Due to the widespread use of stereotypes to categorise others,
stereotypes play a significant role in the psychology of perception. Many people frequently do so
without being aware of it. Perceiving someone who is different as a member of a group rather
than as an individual is a frequent practise. Psychologists that focus on interpersonal perception
frequently try to develop thorough justifications for this widespread stereotyping habit. The
practise of critically recognising people as distinct persons with their own sets of strengths and
shortcomings is typically required to improve specific interpersonal skills. Perceptual
accentuation is a prevalent social psychology error in this field. This flawed mode of thinking
frequently results in false perceptions that are motivated by the perceiver's own wishes rather
than by reality. It commonly can result in misunderstandings and irregularities in some
interpersonal situations. One of the key methods to enhance this kind of interpersonal
communication is to be able to spot and adjust perceptual accentuation.
 2.9 Errors and Distortion of Perception
Perception is the process of being aware of or comprehending sensory data. It is a method of
organising and interpreting sensory perceptions in order to give meaning to external forces or the
environment. When it comes to judging others, most people employ a variety of shortcuts. They're
also known as perceptual errors or perceptual accuracy barriers. The failure to perceive people,
things, or circumstances fairly and accurately is known as a perceptual error. Bias, prejudice, and
stereotyping are examples of things that have always caused humans to make mistakes in various
aspects of their lives. Perceptual error has a significant impact on organisations, and it impedes
proper decision-making skills when it comes to hiring, performance appraisal, review, and feedback,
among other things. In the workplace, there are many different sorts of perceptual errors.

1. Selective Perception

People perceive things based on their own interests, ideas, and backgrounds. It's the inability to
recognise and remember the stimuli that produce emotional distress.
We participate in selective perception because we cannot monitor everything going on around
us. People interpret what they perceive selectively based on their personal interests,
experiences, and opinions. It's the proclivity to ignore and forget stimuli that cause emotional
distress or contradict our existing ideas. For instance, because of in-group partiality, a teacher
may have a favourite student. The teacher is unconcerned with the student's poor performance.

2. Halo Effect
It is the tendency to judge a person only on the basis of a single attribute, which can be positive or
negative. In this case, a single attribute dominates the individual's other features. It aids in the fast
assessment of others. Halo error has the most profound/deep impact and implication on an
individual's perception and behaviour, among other types of perception errors. They aren't always
wrong, but they're definitely more wrong than right most of the time.
By focusing on a single habit or trait, we misinterpret others.
It has a significant impact and frequently produces inaccurate results.
For example, we have the sense that a lazy person will never be punctual in any situation.

3. Stereotyping (Grouping/Generalizing)

To make things easier, we frequently classify individuals and events into pre-defined basic
categories or groupings. Stereotyping is when we categorise people based on some features
(typically ethnicity, occupation, sexuality, and so on). It aids in the reduction of complexity. It
ignores individual distinctions and makes a mistaken decision.
Indians, for example, are irritable, fat men are jolly/happy, Americans are ambitious, Chinese
are mysterious, and Japanese are hardworking, and so on. The examples given above are not
always accurate. They are correct in general, but not in this case.

4. The effect of contrast

 Another prevalent perception error in our job is this one. We don't judge a person on their
own. When we evaluate a person's characteristics, we are influenced by comparisons with
other people we've just met who rate higher or lower on the same scale. When managers go
through hiring interviews, performance appraisals, and so on, this type of inaccuracy is fairly
common.

5. Projection

This is another form of perceptual error that occurs frequently. The tendency for people to
see their own characteristics in other people is known as projection. When people pass
judgement on others, they are projecting their own characteristics onto them.

6. Impression

The old saying goes, "the first impression is the last impression." At first glance, we often
build impressions about others. They begin to have impressions and sense even before they
are aware of any of their personality qualities. Perceptual distortion can occur as a result of
this. When performing a performance appraisal, this inaccuracy could lead to bias.
Here are several examples:
Students on the first bench are disciplined and intelligent.
Students on the last bench are usually considered as undisciplined and poor in academics

7. Illusion

The illusion is a misunderstanding. In this case, the user will misinterpret a stimulus and
experience it incorrectly.
In the dark, a rope, for example, can be mistaken for a snake or vice versa. An unknown
person's voice is mistaken for that of a friend. A stranger standing at a distance could be
mistaken for a known individual.

8. Horn Effect

When a person is totally judged on the basis of a perceived unfavourable quality or attribute.
As a result, the overall grade is lower than acceptable. Because he is not officially dressed at
the office, he may be informal at work as well.

2.10 Managerial Applications of Perception

The primary focus of a manager is the attainment of organisational goals. Employee behaviour is
influenced by perception. As a result, facts may not always be accepted. As a result, knowing human
perception is critical to comprehending and directing behaviour. People in organisations are always
passing judgement on one another. Managers must evaluate the performance of their subordinates.
Let's take a look at some of the more obvious applications of perceptions in the workplace. There
are a few key areas that require extra attention in terms of perceptual accuracy.
1. Working Relationship with Others:
Managers in the organisation need to determine if their employees have similar, if not identical,
perspectives. Interpersonal ties can be strengthened if people do not misunderstand one other, if
they do not operate with busy thoughts, and if they have a good attitude. Misconceptions frequently
lead to strained relationships and, in extreme cases, open conflict.
2. Selection of Employees:
The employment interview is a crucial factor in determining who is hired and who is not in any
organisation. According to evidence, interviewers frequently make incorrect perceptual judgments.
In most cases, interviewers form early impressions that become firmly entrenched very soon. Tests,
interviews, and an examination of the applicant's past are used to make the final decision. The
perception of managers should not be biased. Employee selection is also influenced by how an
applicant approaches the question. His responses will be in accordance. If the candidate approaches
the questions in the same way that they are posed, he will be in a better position to respond
positively. Perceptual differences completely alter the meaning of a response, which might lead to
severe issues.
3. Appraisal of Performance:
The accuracy of a manager's perspective has a significant impact on appraisal. Promotions, transfers,
increments, and staff retention are all dependent on the boss's perception process in the majority of
circumstances. Employee performance is the subject of performance appraisal, which must be based
on objective criteria. Regardless of this, it is based on subjective criteria, such as superior's own
preferences and dislikes.
4. Intensity of Efforts:
When evaluating a person's level of effort, the management considers the qualitative component of
their performance. If he believes they are putting up sufficient effort and are sincere, he will give
them a good rating despite their failure to meet targets, and vice versa. When judging this element,
the manager must be cautious.
5. Loyalty Level Increase:
The level of loyalty can be raised by properly applying perception. Employees will regard
management as their own organisation if they believe management is not taking unfair advantage of
them and that management understands them. As a result, job switching will be reduced.

Summary
A person's (or thing's) personality is a set of characteristics that distinguishes them from others.
Personality is the sum of all a person's characteristics, including their behavioural, temperamental,
emotional, and mental characteristics. The whole of someone's attitudes, interests, behavioural
patterns, emotional responses, social roles, and other individual features that persist through time
are referred to as personality. Modern personality psychology is significantly inspired by these early
philosophical roots, and seeks to determine which factors, such as free choice, inheritance, or
universality, are most relevant in developing human personality. Psychodynamic, neo-Freudian,
learning, humanistic, biological, trait, and cultural perspectives are among the various approaches to
the modern psychological study of personality. The set of mechanisms we utilise to make sense of
the many stimuli we are faced with is referred to as perception. Our perceptions are formed by our
interpretations of various sensations.The perceptual process starts when we receive stimuli from the
environment and finishes when we interpret those stimuli. This procedure occurs hundreds of
millions of times per day and is usually unconscious. The attended stimulus is created when we pay
attention to or choose one specific object in our environment. Neural processes arrange stimuli; they
begin with our sense receptors (touch, taste, smell, sight, and hearing) and continue to our brains,
where we organise the information, we receive. We can interpret stimuli once we receive and
arrange them, which essentially means that we take the information and turn it into something we
can categorise. “A process through which individuals arrange and interpret their sensory experiences
in order to give meaning to their environment” is another definition of perception. There are three
types of factors that influence perceptual mechanisms:
 Characteristics of the Perceiver
 Characteristics of the Perceived or target, and
 Characteristic of the Situation

UNIT 3: LEARNING AND BEHAVIOR MODIFICATION

Objectives
At the end of this unit, you will be able to:
 Understand concept of learning
 Understand various learning processes
 Understand the various factors affecting learning
 Understand the theories of learning
 Understand the concept of reinforcement

Introduction
The process of obtaining new understanding, knowledge, actions, abilities, beliefs, attitudes, and
preferences is referred to as learning. Learning can take place in a variety of contexts. The premise
that good behaviour should be rewarded with positive consequences and that bad behaviour should
be punished with negative consequences is the foundation of the behaviour modification approach.
Positive punishment, negative punishment, positive reinforcement, and negative reinforcement are
all components of the behaviour modification process.
3.1 Concept and nature of learning
Learning is described as a permanent change in behaviour as a result of both direct and indirect
experience. It entails a change in behaviour and attitude as a result of education, training, practise,
and experience. It is completed by the development of relatively permanent information and
abilities. To different people, the term "learning" denotes different things, and it is utilised in various
theories in diverse ways. Over the last half-century, definitions of learning have shifted from changes
in an individual's thoughts or behaviour to changes in involvement in ongoing activities with other
persons to changes in a person's identity within a group as theories of learning evolved (e.g., a
change from being a follower to being a leader). Although most definitions of learning include a
change in an individual's knowledge, capacity to perform a skill, or participation in a group activity
with other people, the nature of this change varies widely among theories. . Learning has a big
influence on people's behaviour since it affects their abilities, role perceptions, and motivation.
Learning is critical for knowledge management, in addition to its significance in individual behaviour.
Knowledge management improves a company's ability to collect, share, and apply knowledge in
ways that help it survive and thrive. Learning is an important aspect of human behaviour. All of life is
a learning experience. We may see how much of a difference learning has made to an individual by
comparing the simple, crude ways in which a child feels and behaves with the complicated modes of
adult behaviour, his abilities, habits, ideas, sentiments, and the like. These are the most important
aspects of learning:
 Change must be long-lasting: This indicates that once we've "learned," our behaviour must
be different, either better or worse, than it was before the learning experience. For example,
you may have “learned” to drive a car or how to operate a computer.

 This shift must be the result of some form of learning or practise. Biological maturation has
nothing to do with this learning. A child, for example, does not learn to walk; it is a natural
biological process. We are not taught how to eat or drink.

 Learning necessitates change, which can be beneficial or detrimental. Change may not be
noticeable until a situation develops that allows for the new behaviour. Performance does
not always represent learning.

 Not all changes reflect learning: for change to be considered learning, it must be relatively
permanent. Temporary changes could simply be reflecting and not represent any learning.
As a result, behavioural abnormalities induced by fatigue or narcotics are ruled out.

 Learning is defined as a change in an individual's mental process or attitude that is

accompanied by a change in behaviour. It should be stressed that learning must result in the
potential for behaviour, not necessarily the behaviour itself. The reason for this discrepancy
is that an individual can learn but, due to a lack of motivation, will not modify their
behaviour.

 Behaviour should change as a result of experience, practise, or training: this means that
behaviour resulting from maturity, disease, or physical harm does not qualify as learning.

 In order to learn, the practise or experience must be reinforced; if reinforcement does not
accompany the practise or experience, the behaviour will eventually vanish.

 Despite the fact that it is not mentioned in any standard definition of learning, learning is not
limited to one's schooling. Learning happens all the time in one's life.

Learning has the following characteristics:

 Changes occur as a result of learning: As previously stated, people gain new information that
is processed in their mind. This procedure generates new information. Their existing pattern
of behaviour changes as a result of this new understanding.

 Change must be permanent: People change their behaviour more or less permanently when
the information they have gained is translated into knowledge and wisdom.

 Behavioural issues: As knowledge and wisdom increase, various attitudes and ideals should
emerge. The behaviour should alter as a result of these new attitudes and ideals.
 Experiential learning: Experiential learning is a type of learning that is based on personal
experience. Direct or indirect experience, personal or through observation or reading, is
possible.

 Reinforcement: In order for learning to occur or be repeated, practise and experience must
be prioritised.

3.2 The learning processes

The Learning Process in Its Different Stages

Consider your own experiences acquiring new skills, such as how to tie your shoes or drive a
car. You most likely began by expressing an interest in the process, and after a period of
struggle, it became second nature to you. All of these events were part of the learning
process, which may be broken down into four stages:

Unconscious incompetence

You don't know what you don't know yet, thus this will probably be the easiest learning
stage. A learner primarily exhibits interest in something or prepares for learning during this
stage. If you wanted to learn to dance, for example, you could watch a video, speak with an
instructor, or sign up for a future session. It's possible that Stage 1 will be completed quickly.

Conscious incompetence

This is the most difficult stage for learners because they begin to realise how much they still
need to learn; they realise what they don't know. Consider the phrase "it's easier said than
done." The student must merely discuss or exhibit interest in a new experience in stage 1,
but in stage 2, he or she must begin to apply new abilities that will help them achieve their
learning goal. You would now be learning basic dance steps in the dance example above.
Practice is required to complete this stage successfully.

Competence with awareness

You're starting to master some aspects of the learning goal and are feeling more confident in
your abilities. For example, you may now be able to do fundamental dance steps with
minimal errors and without needing your instructor's assistance. Stage 3 necessitates the
repetition of skills.

Competence that is not consciously recognised

This is the ultimate level, in which learners have successfully practised and repeated the
technique they learned so many times that it is practically second nature to them. You might
be able to apply your dancing talents to a freestyle dance routine that you develop yourself
at this point. However, if you want to feel like you've "mastered" a skill by the time you
 reach stage 4, you'll need to keep practising and re-evaluating which stage you're in so you
can keep learning. For example, if you now feel secure in your basic dance skills and can
execute your own dance routine, you might want to branch out and try tango or swing
dancing. This will return you to stage 1 or 2, but because of the dance talents you learned
previously, you may be able to proceed through the stages more rapidly this time.

3.3 Factors affecting learning

Learning is a process in which a person's behaviour, abilities, understanding, and values change
permanently as a result of training, practise, and education. It causes some behavioural changes, and
once a person has learnt new skills, they will stay with him for the rest of his life. In most cases,
learning is driven by a need. In terms of leadership capacity, developing expertise, and workplace
motivation, learning is directly or indirectly tied to organisational behaviour. To cope with the
organization's constantly changing environment, every organisation must develop new ideas,
concepts, technologies, knowledge, strategies, understanding, behaviour, skill value, technologies,
attitude, and preferences, among other things.Learning is based on a few important factors that
determine what changes this experience will bring about. Motivation, practise, environment, and
mental group are the key variables or major factors that influence learning.
Returning to these considerations Let's have a look at these elements.

 Motivation: is defined as the encouragement and support received in order to finish a task
or achieve a goal. It is a crucial part of learning since it provides us with the motivation to
accomplish a task. The coach, for example, inspired the players to win the game.

 Practice: We've all heard the saying, "Practice makes perfect." It is critical to practise what
we have learned in order to be a perfectionist or at the very least complete the work. For
example, we can only call ourselves programmers if we are able to execute the code we
have created.

 Environment: We learn from our environment, and we learn from the people we meet.
Internal and exterior environments are the two sorts of environments. When a child is at
home, he or she learns from their family, which is an internal environment, but when they
are sent to school, they are exposed to an external environment.

 Mental group: It depicts our thinking as a result of the individuals we choose to hang out
with. Simply put, we form a group of people with whom we have a connection. It could be
for a social cause, when people with similar mindsets work together to achieve a common
goal. A gathering of readers, travellers, or other people, for example.

 Sensation and Perception: Two fundamental psychological elements, sensation and

perception, have an impact on learning. Perception is founded on sensation. The five
sensory organs of humans are the ears, tongue, skin, eyes, and nose. The receptors of
human understanding are these sense organs. They are typically used to aid in the
comprehension of inputs acquired from the environment. Anyone these organs that fails will
 have an overall effect on learning and will eventually act as a barrier to a person's ability to
learn more. Many eye problems, such as hypermetropia, astigmatism, and myopia, for
example, have a significant impact on the human body, resulting in redness of the eyes, pain
in the spinal cord, doubt and stress when studying, tension, and headache, among other
things.

 Fatigue and Boredom: Fatigue and boredom are two different things. Fatigue is a mental or
physical exhaustion that has an impact on overall work efficiency and competency, whereas
boredom is a demotivation or strong dislike or loathing of work. If such distaste persists in a
person's thoughts, he or she may experience fatigue or weariness, even if he or she is not
physically exhausted. Boredom, as opposed to exhaustion, irritates people more.

 Age and Maturity: Age and adulthood have a significant impact on the learning process.
Learning will not take place if the person is not in the correct state of mind or lacks
intelligence. Some people can quickly integrate information into their minds, while others
may need more time to do so. Mental age and chronological age increase in lockstep, and
when a person reaches the age of sixteen, it stops developing. As a result, intellectual
adulthood is defined as an increase in age at which a person can use his or her mind to
tackle complex issues or activities.

 Emotional Conditions: When the receptive environment surrounding them is favourable, the
speed and quality of the learning process can be boosted. Satisfaction, happiness, and joy
are essential for any form of learning, whereas negative emotional states operate as a
barrier to learning. Many studies have been conducted, and it is well documented that
psychological problems such as emotional anxiety, exertion, pressures, and hindrances,
among others, are not ideal for following any theoretical approach.

 Needs: Every human being has a unique set of requirements. The satisfaction of these
requirements leads to the fulfilment of some life goals. The specific need is met for a short
time after the aims are achieved. Finally, an internal urge emerges, and these tendencies
resurface sooner or later, paving the door for other actions to be completed. Humans have
physiological demands such as the need for food, oxygen, air, shelter, and water, among
others. Some needs, like as acceptance, love, acknowledgment, and self-interest, are
collective. The physiological demands and the collective needs are very different. Social
requirements usually arise after physiological demands have been met. Security, love,
affection, and self-esteem serve as significant physiological requirements in the learning
process.

 Interests: A person's motivation for choosing a specific behaviour from among multiple
options is their interest. To promote the learning process, engage the student in activities
that pique his or her interest.

 Attitude: The learner's mental approach is critical and has a significant impact on the
learning process. If a student is actively prepared, has attention and interest in the subject
he is supposed to learn, he will almost surely have a positive attitude about it. This mindset
will enable the student to fully control the learning process while maintaining a relaxed state
of mind and maximising efficiency.
These are the primary influences on what a person learns; they form the foundation of our
behaviour, and everything we do is influenced by what we lea

3.4 Theories of learning

1 Classical Conditioning Theory

 Classical conditioning is the process by which people learn to associate the information value
of a neutral stimulus to a stimulus that will not induce a response in the natural world. It's
possible that such learnt behaviours (or reflexive behaviour) aren't under a person's
conscious control. A natural reaction will be elicited by an unconditional stimulus
(environmental event) in the classical conditioning process. The unconditioned stimulus is
then linked to a neutral environment event (also known as conditioned stimulus), which
brings out the behaviour. Following that, the conditioned stimulus will bring forth the
behaviour, which is known as the conditioned response, on its own.

 Ivan Pavlov, a Russian scientist whose research with dogs led to the early formulations of
classical conditioning theory, is the name most usually associated with the theory. The
sound of a metronome (the conditioned stimulus) was connected and coupled with the
conditioned response - salivation - in Pavlov's famous experiment. The dogs eventually
learned to show a salivation response (conditioned response) to the sound of the
metronome alone, according to the experiment.

 The classical conditioning process can assist in the comprehension of a wide range of
organisational behaviours. The unique lights exhibited in front of any hospital's emergency
room announce the arrival of a patient who need immediate medical attention and
treatment, whereas the lights displayed throughout the building during the opening of a
new office indicate the delight of starting a new business.

 Classical conditioning is a passive process in which we interpret events in a certain way.

Classical conditioning is not used in the workplace because most desired employee
behaviours do not involve responses that can be changed with classical conditioning
techniques, i.e., it can only explain simple reflexive behaviours and not the complex
behaviours that occur in organisations.

3. Operant Conditioning Theory

 This learning theory is strongly related with B.F. Skinner. Skinner suggested that behaviour is
determined from the outside, implying that it is an involuntarily learnt behaviour. The word
operant conditioning refers to voluntary behaviours that have some influence on the
environment and are referred to as operant. Skinner believed that if certain pleasurable
outcomes were produced to encourage desirable forms of behaviour, the frequency of such
behaviour would grow. This indicates that if people are positively reinforced, they will
engage in desired behaviours.
 Also, if the desired behaviour is rapidly rewarded, the rewards will be more effective.
Furthermore, if unfavourable behaviour is punished, it is less likely to occur again. Most of
our actions, such as walking, talking, and working, can be classified as operant behaviour.

 Instrumental conditioning is another term for operant conditioning theory. This theory
describes a learning process in which behaviour is affected or controlled by the results. Let's
use a child as an example. A child might learn how to open a package to acquire the candy
inside, or how to stay away from a hot stove. Classic conditioning, on the other hand,
establishes a link between a stimulus and a behaviour. The youngster may learn to salivate
at the sight of candy or shiver at the sight of an angry parent, as an example.

 The investigation of these two types of learning dominated the study of animal learning in
the twentieth century, and they remain at the foundation of behaviour and learning today.

4. Cognitive Learning Theory

 Cognition is a term used to describe a person's ideas, thoughts, knowledge, interpretation,

and understanding of himself and his surroundings.

 Learning, according to this view, is the result of purposeful thinking about an issue or
circumstance based on existing facts and responding objectively and more orientedly. It
believes that a person learns the meanings of numerous objects and experiences, as well as
the responses associated with those meanings.

 This theory contends that the learner creates a cognitive structure in memory that organises
knowledge about the events that occur.

 The cognitive process is emphasised in cognitive theories. The link between cognitive
environmental stimuli and expectancies is established in cognitive learning theories.

 A well-known cognitive theorist is Edward Tolman. He used rats as test animals in his
experiment. He discovered that a rat could be taught to run through a complex maze with
purpose and direction in order to achieve a goal (food). The rat learnt to anticipate the
possibility that particular cognitive cues connected with the choosing point would lead to
food. Tolman's method is denoted by the letters S-S. (Stimulus-Stimulus). To put it another
way, learning is the relationship between the cue and the expectation.

 Employees expect increased pay, promotions, and a high level of job satisfaction. Employees
learn that working productively allows them to meet their goals. Cognitive environmental
cues help people realise that they can work productively. The link between cognitions and
organisational behaviour is currently causing concern among organisational behaviour
researchers.

5. Social Learning Theory

 People learn in a variety of ways, including by observing others, having direct experiences,
and having indirect experiences. Social learning is defined as learning through a variety of
methods. Behavioural principles, cognitive concepts, and environmental variables are all
incorporated within social learning theory. The inputs for this theory come from classical and
operant conditioning techniques. It also recognises that learning occurs through a variety of
methods, including modelling and self-control.

 People learn from a variety of role models, including parents, teachers, classmates, and
leaders. In social learning theory, models have a substantial impact. Individuals are
influenced by the model through four different mechanisms. The following are the four
processes:

 Attentional Processes: People learn from the important aspects of the models, such
as leadership abilities, attractiveness, and quick decision-making, among other
things.

 Retention Process: The model's amount of effect is determined by how well the
individual remembers the model.

 Motor Reproduction Processes: Models are sometimes imitated. Children follow in

the footsteps of their parents and teachers. This is due to the fact that observation
leads to action.

 Reinforcement Processes: Individuals prefer to behave in the model's manner if

doing so results in rewards. People pay more attention to and learn from the
models' favourably reinforced behaviours.

 The following are the key assumptions of social learning theory:

 Learning is a cognitive process that takes place in a social context, not a behavioural
one.

 Observing a behaviour and the outcomes of that activity can lead to learning (known
as vicarious reinforcement).

 Observation, extraction of information from those observations, and making

judgments about how to perform the behaviour are all part of learning (known as
observational learning or modelling). As a result, learning can take place without a
visible change in behaviour.
 Although reinforcement is essential in learning, it is not entirely responsible for it.

 The learner is not merely a passive recipient of data. Understanding, surroundings,

and behaviour all have an impact on one another.
 3.5 Reinforcement
Reinforcement is a general term for anything that makes it more likely that a reaction will take
place. The definition of reinforcement psychology refers to how reinforcement influences
behaviour. The response will grow or get stronger with reinforcement. A child who receives
praise for clearing up the toys will probably continue to do so in the future. A dog is more likely
to repeat the behaviour we're teaching them in the future when we reward them with treats
while training.The goal of reinforcement is to strengthen or develop positive behaviour. Positive
and negative reinforcement come in two flavours in organisational behaviour. By offering
positive reinforcers, positive reinforcement reinforces and improves behaviour. Primary
reinforcers and secondary reinforcers both exist. Primary reinforcers, such as food and water,
meet fundamental biological demands. Primary reinforcers do not, however, always reinforce.
For instance, someone who has just finished a five-course meal might not find food to be a
reinforcer. In organisations, secondary reinforcers are mostly responsible for behaviour. These
consist of rewards like cash, status, grades, awards, and compliments from others. These consist
of rewards like cash, status, grades, awards, and compliments from others. These are frequently
referred to as "conditioned reinforcers" because of their linkages with the primary reinforcers,
which turn them become positive reinforcers. When a behaviour is desirable, negative
reinforcement removes an unpleasant occurrence that came before it. The possibility that the
intended activity will take place is increased by this process. The stimuli that strengthen
reactions that enable an organism to flee or avoid them exist in the same way as positive
reinforcers. Thus, our propensity to carry out an activity that enables us to avoid an impending
application of a negative reinforcer or to escape from one that is already present increases.
Some negative reinforcers, like strong heat, extreme cold, or electric shock, have an immediate
impact whereas others develop their influence over time through frequent association. Negative
reinforcement is prevalent in both organisations and daily life. When supervisors stop
reprimanding workers whose subpar performance has improved, they are enacting negative
reinforcement. Employees are more inclined to repeat actions that improve their performance
when criticism is withheld. When parents give in to their children's tantrums, especially in public
settings like restaurants and shopping centres, this also serves as negative reinforcement. As
time passes, the parent's propensity to cave may rise because doing so silences the child's
screams.
As a result, techniques that reinforce behaviour include both positive and negative methods. The
display of favourable consequences enhances and increases behaviour through positive
reinforcement. By threatening and using an unwanted consequence, or by stopping or removing
an undesired consequence, negative reinforcement enhances and increases behaviour. Due to
the fact that both negative reinforcement and punishment make use of unpleasant sensations to
change behaviour, they are frequently misunderstood. While punishment is used to make an
undesirable conduct less frequent, negative reinforcement is used to make an undesirable
behaviour more frequent.

3.6 Modification of ob (ob mod) about learning

Organizational behaviour modification's meaning:
Operant conditioning is highly valued by contemporary behaviourists for shaping and motivating
human behaviour. Behavior modification, also referred to as OB MOD, uses a variety of
reinforcements to change people's behaviour. The development and inspiration for OB Mod came
from B.F. Skinner's work. Using this strategy, managers can change or get rid of bad behaviour and
replace it with something more conducive to reaching goals.
OB A technique for changing organisational members' behaviour so that they participate in desired
unwanted behaviour and replace it with behaviour is referred to as mod in simple terms. It can be
used to increase organisational effectiveness as well as employee motivation.
A-B-C’s Of Behaviour Modification:
As was just mentioned, behaviour modification aids the manager in changing or eliminating
unfavourable behaviour and substituting more compatible behaviour. It also aids in our
comprehension of how environmental factors affect behaviour.

There are two possible behavioural contingencies:

(i) The Antecedents: These are the things that happened before the behaviour
(ii) The outcomes, or the activities that happen as a result of a specific behaviour.
Together, these two variables make up the A-B-C model.
The following figure illustrates how the fundamental goal of this paradigm is to manage behaviour
by controlling its antecedents and consequences:

Summary
Learning is also defined as a reasonably permanent shift in the frequency with which a certain
individual behaviour occurs. The work-set and organisational norms will serve as objective
foundation for judging if an employee's behaviour is desirable or undesirable, and whether he or she
needs to learn and practise productive work behaviour in an organisational environment. As a result
of education, training, socialisation, and experience, it is the process by which skills, knowledge,
attitudes, and behaviour are produced and developed. A well-known cognitive theorist is Edward
Tolman. He used rats as test animals in his experiment. He discovered that a rat could be taught to
run through a complex maze with purpose and direction in order to achieve a goal (food). The rat
learnt to anticipate the possibility that particular cognitive cues connected with the choosing point
would lead to food. Tolman's method is denoted by the letters S-S. (Stimulus-Stimulus). To put it
another way, learning is the relationship between the cue and the expectation. People learn in a
variety of ways, including by observing others, having direct experiences, and having indirect
experiences. Social learning is defined as learning through a variety of methods. Behavioural
principles, cognitive concepts, and environmental variables are all incorporated within social
learning theory. The inputs for this theory come from classical and operant conditioning techniques.
It also recognises that learning occurs through a variety of methods, including modelling and self-
control. People learn from a variety of role models, including parents, teachers, classmates, and
leaders. In social learning theory, models have a substantial impact. Individuals are influenced by the
model through four different mechanisms.
UNIT 4: ATTITUDE AND VALUES
Objectives
At the end of this unit, you will be able to:
 Understand concept of attitude and its components
 Understand individual behaviour and attitude
 Understand the theories of attitude and factors influencing it
 Understand the concept of values and factors influencing it
 Understand types of values
 Understand effect of values on behaviour

Introduction
Attitudes are concrete evaluations of an object, whereas values are abstract and situation-
independent; attitudes can be positive or negative, whereas values are predominantly positive; and
attitudes are less important to our sense of self than values. The way we have learnt to think about
how things ought to be or how people ought to behave, especially in terms of attributes such as
honesty, integrity, openness, etc., is what values are. Attitudes are the learned responses to people
and events that have been shaped by our beliefs, values, and presuppositions. The manner in which
we respond to situations and conduct might reveal our attitude. To embrace a diverse culture and
set of behaviours as a successful manager, we must change our conduct in a way that is consistent
with our beliefs and values.
4.1 Concept of attitudes
Psychologist named Gordon Allport coined the phrase -“Attitudes are learned predispositions to
respond to an object or class of objects in a consistently favourable or unfavourable way”.
Attitude is the most important aspect that influences a person's or organization's behaviour. It
manipulates how people and objects are perceived, how they are exposed to and comprehend
information, how they choose friends and co-workers, and so on. Early in the history of social
psychology, the role of attitudes in interpreting psychological phenomena was formalised.
A positive, negative, or mixed appraisal of an object expressed at some level of intensity is referred
to as an attitude. It expresses one's positive or negative opinion on a person, place, object, or event.
These are critical factors of our attitudes toward and actions in relation to all aspects of our social
environment. Attitudes are made up of a complicated web of evaluative ideas, sentiments, and
proclivities toward specific acts.
An attitude is a reasonably persistent emotional inclination to react consistently to a certain object,
situation, person, or group of people. In what is known as the ABC model of attitudes, every attitude
has three components: A for affective, B for behavioural, and C for cognitive. The affective
component refers to an individual's emotional response to an attitude object. 'When I think about or
see a snake,' for example, I get afraid.' “a learned predisposition to respond in a consistently
favourable or unfavourable manner with respect to a given object.”  is how attitude is described.
That is, attitudes have a different impact on behaviour than values.
An individual's particular method of constantly responding in a favourable or unfavourable manner
to objects, people, or events in his surroundings is referred to as attitude. It is founded on an
individual's experience and interpretation of that experience, and it leads to specific behaviours or
viewpoints.
The way a person feels about something is reflected in their attitude. Because attitude predicts a
person's behaviour or opinions in specific situations, it is often possible to predict their behaviour or
opinions. Attitudes indicate a consistent pattern of behaviour, as well as a consistent way of thinking
and feeling.
Attitudes are variously defined as readiness to act, mental posturers, conduct guide, sentiments,
desires, anxieties, convictions, and a state of readiness! a tendency to act in favour of or against an
object in the environment; frames of reference that influence behaviour, and so on.
Thus,
 Attitudes are formed as a result of one's life experiences.
 They incline people to act (react) in particular ways;
 Attitudes and behaviour are consistent; and
 The unfavourable or favourable manner in which people behave reflects the evaluative
component of attitudes.
As a result, a person's attitude is produced by the intersection of their ideas and values. It is a
favourable or unfavourable assessment of something or someone. Furthermore, an attitude leads to
a desire to conduct in a certain way, which leads to the behaviour itself.

4.2 Understanding components of attitude

The following is a list of the three components:
1. Affective or Emotional Component
The informative component of an attitude prepares the way for the emotive component, which
is more important. The emotional components include how a person feels or affects an object,
whether good, neutral, or negative. This statement explains why this component exists.” This
employment appeals to me because the company's future prospects are excellent.”

2. Behavioural Component
The behavioural component refers to a person's proclivity to behave in a certain way toward an
object. For example, the above-mentioned individual may opt to take the position because of
the favourable future possibilities. Only the behavioural component of attitudes may be directly
observed out of the three components. One cannot observe another person's beliefs
(informational component) or feelings (emotional component) (the emotional component). Only
inferences can be made about these two elements. However, in the study of organisational
behaviour or the behavioural component of attitudes, knowing these two components is critical.

3. Cognitive Component or Informational

The informational component is made up of a person's views, values, ideas, and other
knowledge about the thing. It makes no difference whether the data is empirically valid or
actual. For example, a job seeker may discover from his own sources and other employees in
the organisation that promotion opportunities in a particular company are quite good. In
reality, it could be correct or incorrect. Nonetheless, the information that person is using is
crucial to his attitude about the job and the firm.
 4.3 Individual behavior and attitude
What are Attitudes?
The best way to think of an attitude is as a state of mind. Numerous variables can influence the state
of mind. Whether it is favourable or negative, an attitude generally has an impact on a person's
disposition and conduct. An attitude might be generic in character or directed at a specific item.
What is Cognitive Dissonance Theory?
The relationship between attitudes and conduct was characterised by the cognitive dissonance
theory as being uncomfortable when there is a discrepancy between the two. People will therefore
try to lessen the discomfort and thereby the dissonance.
Attitudes Affect Behavior
Two mindsets are most influential on conduct in the workplace:
Mentally challenging work, equitable rewards, supportive working conditions, supportive coworkers,
personality-job fit, and heredity/genes are some of the factors that affect how satisfied a person is
with their employment.
Organizational Commitment: Elements of organisational commitment include a desire to stay with
the organisation, a readiness to put forth a significant amount of effort on its behalf, and a belief in
and acceptance of the organization's aims and values.
Internal Aspects of Attitude
External cues can arouse an individual's attitudes. Three types of internal reactions to outside
stimuli might result in an attitude:

Affect (Emotional responses),

Cognition (thoughts, perceptual reactions, and conclusions), 
Action Tendencies.
A positive attitude is described by:

The extent or degree of favorability or unfavorability toward an object or event is known as its
valence.
Multiplexity: The amount of components that make up an attitude.
Relation to needs - Different attitudes are appropriate for different needs.
Centrality: How significant the attitude object is to the person.
Attitude Formation
Attitudes are acquired or learned through a variety of sources, including:
Personal experiences
Association
Family
Peer groups and society
Models and
Institutional factors.

4.4 Theories of attitude formation

1 Balance Theory
Heider's Balance Theory, developed by social psychologist Fritz Heider, is based on the need for
balance in interpersonal relationships, or in something specific between two or more people, so that
there is harmony between thoughts, emotions, and social relationships, and the ideas shared by
both subjects coexist without tension or complication. This is how this theory of motivational
psychology describes how the human being achieves a balance of cognitive consistency as a scale.
According to Heider, likes and dislikes are linked to balance and imbalance.
The desire for coherence between attitudes and relationships with others maintains the balance;
nevertheless, when a human being is in dispute and senses an imbalance, he is more likely to seek
changes in order to reach an agreement and restore cognitive harmony to the situation. Heider’s
Balance Theory examines the relationships between aspects that people may believe to be members
of the same group, and how these relationships can provide the unity needed to keep these
relationships in check.
To put it in other way, it entails a person's assessment of an attitude object as well as another
person's assessment. If one person has a positive attitude toward another person and a positive
attitude toward a specific thing, the system will be balanced if the second person also has a positive
attitude about the object. The system would be out of balance if the second individual had a
negative attitude toward the object, generating stress and the need to adjust one of these attitudes.
The direction of change will be chosen by what requires the least amount of effort. The hypothesis is
based on the idea that an individual's attitudes must be consistent.
Each person's reactions are framed within a triangle that Heider refers to as the P-O-X Model, from
which the positive and negative can be deduced from what each person experiences with another or
with a specific object. You will be able to visualise it with the help of the examples provided.
(+) Harmony According to Heider, there is an imbalance (-).
The ability to link balance, harmony, the positive and negative is dependent on social perception.
According to Heider, this social perception plays a crucial role in setting the balance of unity
connections based on that perception. Relationships can be both positive and bad (like-approve)
(dislike- disapprove). These connections are about belonging, pleasant sentiments (near, belonging,
similar), or bad sensations (far, distant, etc). (Not belonging, not similar, not close).
With the foregoing in mind, Heider created the P-O-X Model to identify the positive and negative
aspects of various situations that humans face, as well as how to live effectively with differences and
conflicts that are not always shared with others (personal and professional environments), and to
achieve a positive outcome at the end of the process.

P-O-X Model
P is a person who experiences balance or imbalance, O is a person who is thought to be in P's
environment or situation, and X is an impersonal entity or other person or object who is a
component of the unit. Two sorts of linkages can be discovered among these three parts: attitudes
of taste or assessment relationship and the second of similarity, participation, and proximity, among
others.
The relationship between P and O can be good if P likes O or negative if P dislikes O. The positive
relationship is represented by PLO, with the L, while the negative relationship is represented by P-
LO.
If P feels attraction or taste for X, or if P feels rejection or dissatisfaction for X, they are in a
relationship. If X is no longer an impersonal entity, it can now participate in the POX triad's process.
Because the psychological balance is more likely to be excellent if each element has a lot of
similarities, Heider divides the sensations into two categories: like and dislike. When there is a
positive unity relationship, there is usually a pleasant emotion relationship as well. Negative units
are grouped together in the same way that negative relationships are grouped together.
Psychological balance: P+OP (+) > O P< (+) O
It also applies to items or objects, as well as triadic connections. It is symbolised as: If a person likes
one object but dislikes another person
P (+)> X
P (-)> O
P (+)> X
When there are three positive or negative associations with two positive ones, cognitive balance is
attained. As in the previous example, the imbalance is created by two positive links and one negative
link. The person will feel imbalance (a negative multiplicative product) in this connection after
multiplying the signs, and will be driven to repair the imbalance in some way. The individual has the
ability to: They decide it's not as horrible as they originally imagined, or they come to a conclusion I
couldn't have reached. Either of them will result in psychological balance, resolving the issue and
providing unity satisfaction. (Alternatively, the person could ignore the object and another person
entirely, reducing the stress caused by the psychological imbalance.) To use Heider's Balance
Theory / Heider's theory of equilibrium to forecast the outcome of a scenario, one must weigh the
impacts of all possible outcomes, and the one that involves the least amount of effort will be the
most likely outcome.
The following is a mathematical formula for determining whether the trio is balanced:
+++= + Balanced
-+-= + Balancing
-++= – Unbalanced
For example- One person insisted that the quality of Indian cars is inferior to that of imported cars,
and that he would never own anything but an imported car. His father presents him with a new
Maruti automobile. There are three elements in this situation: the person, his father, and the car. He
may either modify his unfavourable relationship with the Maruti automobile or ask his father to
change his attitude and provide him an imported car to bring the situation back into balance. Thus, if
that individual begins to declare that the Maruti automobile isn't so bad, it indicates that he has
altered his relationship and restored equilibrium to the situation.
Criticism:
Heider's basic model has been criticised for the following reasons:

 The theory ignores the degree of emotive or unit links, as well as the relevance of the
elements and relations to the perceiver.
 As a result, there are no degrees of balance or imbalance, and quantitative predictions
regarding the degree of attitude change are impossible.

2 Congruity Theory
 Osgood and P.H. Tannenbaum have proposed the congruity theory of attitudes which is
related to the balance theory.

 This theory focuses on the changes in the evaluation of a source and a notion that are
related by an associative or dissociative statement. When a source and idea that are
positively related have the identical evaluations, and when a source and concept that are
adversely associated have the exact opposite evaluations, congruity exists.

 Incongruity is an unstable situation, while congruity is stable. As a result, incongruity causes

a shift in perspective. This theory indicates how much of a shift in attitudes toward the
source and concept should occur in order to overcome inconsistency.

 The role of persuasive communications in attitude transformation is the subject of this

cognitive consistency theory. Congruity theory is similar to balancing theory in that it
proposes that humans favour cognitive system pieces that are intrinsically consistent with
one another.

 As a result, if the recipient of a persuasive communication has a bad attitude toward the
message's content but a favourable attitude toward the message's source, or vice versa, he
or she will be compelled to adjust both of these attitudes to some extent in order to restore
congruency.

 Congruity theory varies from balancing theory in that it considers gradations of element
evaluation and hence makes more exact predictions about the quantity of adjustment
needed to restore element congruency.

3 Affective Cognitive Consistency Theory

 The affective-cognitive consistency theory, proposed by M.I. Rosenberg

 This theory is concerned with the consistency between a person's overall attitude or effect
toward an object or subject and his views about how it relates to his more general ideals.
 This idea is primarily concerned with what occurs within an individual when an attitude
shifts.

 It is assumed that as an attitude is changed, the relationship between the affective and
cognitive components of the attitude changes.

 The following are some of the assumptions made by the theory:

 This cognitive structure component tends to be compatible with a person's effect on or

appraisal of the attitude object.

 When inconsistency exceeds a particular threshold, the individual is motivated to reduce

it and, as a result, adjust one or both components to make them more consistent.

 According to the hypothesis, changes in the emotive component cause changes in the
cognitive component, resulting in consistency between the two.

 Persuasive communication can also be used to modify attitudes by re-evaluating the

goals themselves, according to the idea.

4 Cognitive Dissonance Theory

 In the late 1950s, Leon Festinger proposed the cognitive dissonance theory. Inconsistency is
defined as dissonance.

 Dissonance is a negative motivational state that occurs when our explicit behaviour
contradicts our attitudes. This causes psychological stress, which must be alleviated. As a
result, one may anticipate people to act in conformity with their feelings in order to prevent
cognitive dissonance.

 As behaviour that has already been performed cannot be changed, one's mindset might
change to relieve this tension. The incentive to commit to the behaviour, commitment to the
behaviour, and effort put into the behaviour are all elements that influence whether or
whether one's attitude changes. Any contradiction that an individual perceives between two
or more of his attitudes, or between his behaviour and attitudes, is referred to as cognitive
dissonance. According to Festinger, any sort of contradiction is unpleasant, and people will
want to lessen the dissonance and therefore the discomfort.

 Individuals will seek a stable condition with the least amount of dissonance possible,
because no one can totally avoid dissonance.

 Three factors influence the desire to eliminate dissonance:

 The significance of the variables that cause the dissonance

 The extent to which an individual believes he has control over the elements.
 The benefits that may be associated with dissonance
  If the factors that cause the dissonance are little, the urge to fix the imbalance will be
minimal. However, if the elements are important, a person must remedy the imbalance. He
has three options: modify his behaviour, adjust his dissonance, or change his attitude.
Another option is to add more consonant parts to balance out the dissonant ones.

 Individuals' perceptions of how much control they have over the components will influence
how they react to the dissonance. They are less likely to be responsive to attitude change if
they believe the dissonance is an uncontrollable effect over which they have no control.
Dissonance can be rationalised and justified as long as it exists.

 Individuals' motivation to eliminate dissonance is influenced by rewards as well. Because it

increases the consistency side of the individual's balance sheet, high rewards accompanying
high dissonance tend to reduce the discomfort inherent in the dissonance.

 These variables show that just because a person is experiencing dissonance, they will not
inevitably move toward consistency, i.e., dissonance reduction. If individuals are required,
this theory can assist anticipate their likelihood to engage in attitude and behavioural
change.
 For example, if their employment requires them to do or say things that are incompatible
with their personal attitude, they will adjust their attitude to make it compatible with their
understanding of what they have said or done.

 Furthermore, after the above-mentioned elements have reduced the dissonance, the higher
the pressures to minimise it.

4.5 Factors influencing attitude formation

Individuals' or groups' feelings and views are referred to as attitude. These attitudes might come
from a variety of places. The following are some of the most important sources:

1. Direct Personal Experience

A person's attitude toward an attitude object is determined by his direct experience with it. An
individual's personal experience, whether positive or negative, has a significant impact on his
attitude. It is difficult to change these attitudes that are based on personal experience.
Attitudes are formed as a direct outcome of experience. They may originate as a result of direct
personal experience or from observation. Employees form attitudes toward a company based on
income, job appraisal, work design, and managerial abilities. When he joins another organisation, he
brings all of his previous experiences with him, which eventually leads to the construction of an
attitude.
For example, a person starts a new job after a friend recommends it to him. However, if he finds his
work to be repetitious, his bosses to be overbearing, and his co-workers to be uncooperative, he will
develop a negative attitude about his employment since the quality of his direct experience with the
job is poor.

2. Association
An individual may come across a new attitude item that is related with an old attitude object on
occasion. The attitude toward the old attitude object may be transferred to the new attitude object
in this instance. If a new worker spends the majority of his or her time with a co-worker who is in the
supervisor's good graces and with whom the supervisor has a positive attitude, the supervisor is
likely to acquire a favourable attitude toward the new worker as well. As a result of the relationship
between the old and new workers, the old worker's positive attitude has been transferred to the
new worker.

3. Social Factors
Social roles and standards can have a big impact on people's opinions. The way people are expected
to behave in a specific role or setting is referred to as their social role. The principles that govern
what behaviours are acceptable in society are referred to as social norms.

4. Family and Peer Groups

Parents, teachers, and peer group members influence attitudes and values. We begin modelling our
views after persons we admire, respect, or even fear in our early years. We watch how our family
and friends act and adjust our attitudes and behaviours to match theirs. We do so even if we haven't
been advised to and haven't had any direct experience with it. Attitudes are similarly formed from
peer groups in colleges and workplaces. For example, if you believe that visiting "Hot Millions" or
"Domino's" is the correct thing to do, you are likely to adopt that mindset. Without being told, if
your parents support one political party, you will instinctively favour that party.

5. Neighbourhood
We reside in a neighbourhood with a variety of cultural amenities, religious affiliations, and ethnic
diversity. It also has residents who are neighbours. These people could be from the North, the South,
or somewhere in between. People from various cultures have a variety of attitudes and behaviours.
Some of these we accept, while others we reject and possibly rebel against. In some ways,
conformity or rebellion is proof of the views we have.

6. Economic Status and Occupations

Individuals' economic and employment situation have an impact on their attitude formation. Our
current and future opinions are influenced by our socioeconomic background. According to
research, unemployment has a negative impact on religious and economic beliefs. Conservatives are
more common among children from the professional class. Increased years of higher education are
linked to respect for the country's laws.

7. Learning
Attitudes can be acquired through a variety of methods. Consider how advertisers utilise classical
conditioning to persuade you to buy a certain product. In a television commercial, young, attractive
people enjoy themselves on a tropical beach while sipping a sports drink. You form a good
association with this beverage as a result of the pleasant and enticing images.
 8. Mass Communications
When compared to values, attitudes are less stable. Advertising communications, for example, aim
to change people's minds about a certain product or service. If the staff at Hyundai Santro can
persuade you to have a positive attitude regarding their cars, for example, such attitude may lead to
a desirable behaviour (for them)-your purchase of a Santro car.

4.6 Measurement of attitudes

 Likert Scale of Attitude Measurement
The Likert Scale is one of the most widely used methods for measuring attitude. The attitude
researcher uses this scale to ask the consumer respondents to rate their level of agreement
with a statement pertaining to the attitude object. Regarding the statement, respondents
have a choice of five options. Vehemently agree, agree, uncertain, disagree, and disagree
strongly are the options. Each response category is given a numerical value. Severely
agreeing receives 5 points, agreeing gets 4, uncertain gets 3, disagreeing gets 2, and strongly
disagreeing gets 1. By choosing one of the five options for each statement, respondents
identify with the statements related to the attitude object. Typically, respondents are asked
to mark the category of response that best captures their emotions. Once respondents have
circled their preferred choices, the scores are added to determine the attitudes of the
customers. A higher score implies a good attitude toward the attitude object, whereas a
lower number suggests a negative attitude.

 Measurement of Attitude on the Thurstone Scale

The Thurstone's Equal-Appearing Interval scale is another name for this approach. With this
scale, "judges" rate attitude claims along an attitude continuum. A panel of judges who are
most likely to be the subject's representatives whose views will be measured are given the
researcher's pool of items. They are required to demonstrate how positively or negatively
one feels about the attitude object. They group each item into one of eleven categories,
ranging from "unfavourable" to "neutral" to "favourable," to take into account equal
intervals along the evaluative dimension. Then, consumer respondents are given a list of
statements, most of which lack any numerical representation of the degree to which they
are positive or unfavourable toward the object under evaluation. Subject responders
categorise each of the assertions as either being true or false. The researcher assigns an
eleven to the extremely favourable statements and a one to the extremely unfavourable
ones. Statements that the respondents believe to be in the middle of these two groups
reflect statements with varying degrees of favorability or unfavorability. After receiving
responses from the respondents, the researcher assigns the values previously assigned by
the judges to the responses to ascertain the attitudes of the respondents.

 Longitudinal Studies
Here, the researcher tracks the evolution of attitudes throughout time. He conducts more
interviews with the same people on the same attitude item at various times. In a consistent
scale of "favourable," "neutral," and "unfavourable," he charts the subjects' responses to the
attitude object over time. This approach is used to track how subjects' views toward a
certain object evolve over time.

 Technique of Observation of Overt Behavior

Subjects' attitudes can be understood by examining their outward behaviour. Customers'
sentiments regarding a specific retailer, for instance, can be gauged by looking at their
purchases there, how often they buy there, and how much they spend.
  Responses to or Interpretations of the Technique of Partially Structured Stimuli
In this instance, people are asked to interpret a certain event after being shown a
photograph of it (picture). The researcher can infer from the individuals' interpretations of
the image what attitudes they have about the object under investigation.

 Utilizing Performance on "Objective" Tasks

Here, either the researcher asks the subjects to complete a certain task or the researcher
watches the subjects as they complete a specific task. Their attitudes can be inferred from
the way they carry out a task. The researcher makes the assumption that a person's mindset
affects how well he does a task.

 Physiological Reactions Method

The measurement of involuntary physiological responses including the galvanic skin
response, pupil dilation, and vocal pitch can also be used to gauge attitudes.

 Osgood Semantic Differential Technique

In this test, the subject is shown pairs of words or phrases with opposing meanings that may
be used to describe an object (a product, for example). The subjects gave each of various
things a rating on each dimension by checking the box next to the line that corresponds to
their emotions.

4.7 Employee attitude and ob

A cheerful outlook at work encourages workers to work more efficiently and effectively. Employee
performance is greatly influenced by how well they get along with their coworkers.

Only when employees exhibit a positive attitude toward their work and colleagues can a healthy
relationship be built. Positive energy makes working enjoyable and makes it simpler for employees
to accomplish their objectives. A person can benefit greatly from having a positive outlook in many
different ways.
Let's examine a few of them below.
1. Profession success
The performance of employees at work serves as a barometer for their success. Instead of
complaining or coming up with justifications for poor performance, employees with a good attitude
will always consider how to complete their duty in a clearly defined manner. Success is attained as a
result, either through promotion or higher pay.
2. Efficiency
Employees are more likely to take pride in their work and deliver it when they have a positive
attitude. As a result, they generate work of higher quality and with fewer mistakes. They produce
more overall and are more productive as a result.
3. Dynamism
Managing a varied staff is the main responsibility of an organisation worker. Some employees
command respect with ease, and others frequently pay attention to and follow them. This is made
feasible by the optimistic outlook exhibited by leaders
4. Collaboration
Employees that get along well with one another are better able to form cohesive teams that work
toward a similar goal. Employees that have a positive outlook are more likely to value one other's
skills and work together to accomplish shared goals as opposed to being too bothered by their
teammates' shortcomings.

5. Making decisions
Employees that are optimistic make better decisions and do so with objectivity. It stimulates sound
reasoning, empowering workers to make informed decisions
6. Inspiration
A positive outlook aids in inspiring workers to overcome challenges they might encounter while
performing their duties. Additionally, it affects how individuals perceive their surroundings. When
they successfully overcome challenges, they become inspired to continue
7. Personal connections
Customers prefer dealing with people who have an optimistic outlook on life. Employees who have a
positive outlook are better equipped to connect with clients and gain their loyal business
8. Stress reduction
Employees' health suffers as a result of stress. So how can workers handle it? Positive thinking can
help people feel less stressed, which will lead to better health and fewer sick days for workers.

4.8 Attitude change

Elections are held in any democracy, including India, to choose which political party will form the
following few years' administration. However, it frequently occurs that the opposing political party
gains the support of the majority of voters while the incumbent party loses that support. Thus, once
developed, attitudes can also be modified. For instance, someone who initially supports atomic
bombs may learn to oppose them, or vice versa. The process of changing one's attitude involves
shifting its valence in the opposite way. This method is shown in the following diagram.

Two alternative theories are put out by social psychologists to explain this process.
The sources of the change in attitude are different for the two strategies. One strategy (cognitive
consistency approach) presupposes that the origin of the process of attitude transformation is
internal. The alternate strategy, however, places more focus on the outside forces that affect how
people think (persuasion).

4.9 Concept of values

Values are consistent, long-lasting views about what is important to a person. Values are extremely
strong, yet they are unique to each person. Values are critical to the study of organisational
behaviour as a silent force shaping human behaviour because values have a significant impact on
people's attitudes, perceptions, needs, and motivations at work. Values are the foundation of human
identity and a powerful yet unseen force that influences human behaviour. Values are so deeply
ingrained in people's personalities that they may be inferred from their actions and attitudes.
Effective managers must comprehend the values that underpin their employees' actions, because
only then can they realize why people behave in unexpected and unusual ways at times. Values are
collective perceptions of what is deemed good, desirable, and right or bad, undesirable, and
improper in a culture, as defined by Organizational Behaviour. Fairness, creativity, and community
involvement are all prevalent corporate ideals.

According to R.K. Mukherjee, “Values are socially approved desires and goals that are internalized
through the process of conditioning, learning or socialization and that become subjective
preferences, standards, and aspirations”.
Moral ideas, general conceptions or orientations toward the universe, or simply interests, attitudes,
preferences, needs, sentiments, and dispositions have all been used to define value. However,
sociologists define this term as "the generic end that carries the connotations of rightness,
goodness, or inherent desirability." It refers to substantial and long-lasting cultural beliefs or ideals
about what is good or bad, desirable or unpleasant. It has a significant impact on a person's
behaviour and attitude, and it acts as a set of general principles in all situations. In reality, the value
reflects fundamental beliefs that one mode of action or end-state of life is individually or socially
preferable to the opposite or converse way of conduct or end-state of existence.
A value system is regarded as a relatively persistent perceptual framework that shapes an
individual's behaviour. The values are the characteristics that a person possesses that are deemed to
be desirable. Attitudes and values are comparable, but values are more lasting and well-built in
nature.

Values Characteristics:

 Values are morally coloured and contain a judgemental component, incorporating an

individual's perception of what is right, good, and desirable.

 Values serve as guidelines for competence and morality.

 Attitudes are more numerous than values.

 Values aren't limited to specific objects, situations, or people.

 Values are relatively stable and unaffected by change.

  Values are the most fundamental aspects of a person's personality.

 Content and intensity are two characteristics of values. The content attribute emphasises
the importance of adhering to a specific code of conduct. The importance of that specific
rule of conduct is determined by the intensity attribute.

 When we rank a person's values according to their intensity. We learn about that person's
value system.

 Each of us has a hierarchy of values in our value system, which is defined by the relative
priority we place to certain values such as freedom, self-respect, honesty, self-respect, and
so on.

4.10 Factors influencing value formation

Sources of Value is a thorough reference on financial decision-making that is appropriate for both
novices and experts. It views financial decision-making as both an art and a science, and it presents a
holistic strategy for maximising a company's worth. No values, on the whole, are relatively stable
and long-lasting. Parents, teachers, friends, and others instil a substantial percentage of our values in
us during our early years. There are numerous sources from which we can obtain various values.

1. Family Factor
The most essential factor influencing an individual's value system is his immediate family. Some
principles are instilled in children. From childhood onwards, a person learns and develops values
from the personalities listed below, which remain in his mind throughout his life. The parenting
strategies that parent use shape their children's personalities. The most influential component in
an individual's learning of social behaviour, values, and conventions is his or her family.

2. Factors of Society:

School, more than any other social component, plays the most crucial influence in shaping
an individual's value system. The school teaches the youngster the fundamentals of
discipline. Furthermore, interactions with teachers, classmates, and other school and college
staff members instil values vital to the teaching-learning process in the child. Religious,
economic, and political institutions in society are other social elements that may influence
values.

3. Personal Characteristics:

Personal characteristics such as intelligence, ability, beauty, and educational level impact a
person's value development. If a person is exceptionally intelligent, for example, he will
grasp the values more quickly. If he is well educated, his school and college will instil good
ideals in him.

4. Cultural Factors:
 Everything that is learnt and passed down from generation to generation is considered a
cultural component. Certain beliefs and behavioural patterns are part of culture. A person is
a member of social culture, group culture, and organisational culture. As a result, he is
known as a mash-up of various cultural components. Certain implicit and explicit beliefs
underpin culture. For example, which culture a person belongs to determines whether he is
cooperative, friendly, or antagonistic. Individual connections vary greatly across cultures and
across specific social groups. Whether an individual values money or doing good for others is
determined by his cultural background.

5. Religious Factors:
Religion provides individuals with strength and comfort in general. Religion is a set of formal
values that is passed down from generation to generation. Technology advancements have
eroded faith in traditional religious morals and beliefs.

6. Life Experiences:
A man's own personal life experiences teach him the most. Man can sometimes benefit
from the experiences of others. Most of the values that drive our behaviour are validated in
the long run by the satisfaction we have gained from pursuing them. Individuals determine
their values based on what they believe to be the most rational. Values have a direct
relationship to how much faith an individual has in them. He should have values that can
withstand the test of time. He should not have fixed values, but rather a flexible framework
that can evolve as the individual, his life position, and the socio-economic environment
change.

7. Role Expectations:

The behaviour associated with a specific job in the organisation is referred to as role
demand. Every organisation has a formal and informal code of conduct. When there is a role
conflict, role demand might cause issues. As a result, managers will need to swiftly learn the
organization's value system. If they want to climb the corporate ladder. For example, if the
manager's informal code of conduct requires him to socialise with his subordinates, he
should learn to do so, even if his personal values contradict with his duty as a manager.

8. Effect of the Halo:

The halo effect is the tendency to judge people based on a single trait, which can be positive
or negative, favourable or unfavourable. Sometimes we make snap judgments about people
based on their first impressions of them. For instance, if a person is kind, he will be seen as
good, capable, helpful, cheerful, nice, and intellectual, among other qualities. Abrasiveness,
on the other hand, is associated with being bad, dreadful, unkind, aggressive, damaging, and
evil. As a result, what one perceives in the cosmos is influenced by one's inner needs. Thus,
the halo effect allows us to see values in others that aren't actually present, but which we
perceive to be present.
 4.11 Types of values
There are two primary classifications that can be applied to values:
(1) Individual values:
Honesty, loyalty, sincerity, and honour are some of the values that fall under this category. These are
the norms that individuals adhere to in order to recognise and safeguard the human personality.
Values like these are associated with the growth of the human personality.
(2) Collective values
These are values that are related with the cohesiveness of the community or collective norms of
equality, fairness, solidarity, and sociableness. Values that are connected with the cohesiveness of
the community are referred to as collective values.
There is another way to classify values, and that is according to the order in which they are arranged
hierarchically:
(1) Intrinsic values:
These are the aspects of one's character that should be considered when determining one's life
goals. They are frequently referred to as ultimate values or values that transcend all others. They are
the ones who establish the framework for human rights and duties, as well as for human values.
They are at the pinnacle of the hierarchy of values, which places them above all other aspects of
one's life that are considered important.
(2) Instrumental values:
Within the context of the plan of gradation of values, these values are placed after the intrinsic
values. These are the means through which the aims (intrinsic values) of one's life can be achieved.
You may also hear people refer to them as incidental or proximal values.
4.12 Effect of values on behavior
Finding out your values is a terrific place to start working on yourself, according to coaches you
speak with. When I first started my coaching career, I individually named my values. The decision-
making process itself surprised me the most when I named them. When in doubt, I always asked
myself: "What principles am I upholding by choosing this road or the other?" Furthermore, it made it
simple and obvious for me to stick by what I considered to be true.
My basic values of courage and connection to myself and the people around me, such as when
presented with the choice of continuing at an unfulfilling job or quitting and starting my own
business, made it simple for me to stand up for what was important to me.
Therefore, why are values so crucial? And how do our actions and decisions change after learning
about them?
Values are the things we hold most dear in terms of our behaviour or beliefs. They serve as our
moral compass. Subconsciously, values are developed as a result of a variety of influences, including
family, culture, society, educational background, etc. They are usually personal and stay the same
over the course of our lives, but how they are prioritised changes depending on the stage of life we
are in.
Naming and defining one's values allows for a great deal of knowledge and decision-making
freedom. That is having the ability to pick what is best for us, as you decide depending on your
priorities in life and what is important to you.
For instance, if you realise that freedom is your top value, you would act differently than if security
was your top priority. Or if you love adventure, this will make you choose a different path than
someone who appreciates routine.
Knowing your principles has an impact on how you act because you act in a way that is completely
consistent with who you are and you actually practise what you preach. You make choices and do
things that uphold these ideals. To uphold the values does require guts. I don't mean to imply that
simply being aware of your values would improve your life. It is them LIVING that does. Because it
embodies genuineness and integrity. Being and owning your full self and what you stand for. Staying
true to your principles entails doing the difficult things that you stand for rather than the simple
things.
There is internal dissonance when you are not living in accordance with your values. I would have
dissonance, for instance, if I were to conduct a workshop without any connection to the participants.
Knowing this, I make an effort to interact with everyone, even if that means shaking hands and
exchanging greetings with each person. I take my time since this is something that is significant to
me.

When something is in conflict with your values, you can sense it and your entire body responds to it.
We typically refer to that as a value conflict. These two or more opposing values are in competition
with one another. Take this employment as an illustration: It pays well, but you don't feel any
connection to the coworkers. It would be challenging for you to survive in that setting if connection
is one of your main values, and you would likely look for something new right away because you are
not fulfilled.
Values must be upheld, followed, and lived by every minute. When you detect a difference in
yourself, ask yourself: What am I doing or becoming that is not consistent with my values?
Values are an excellent way to become more conscious of both yourself and those around you. If you
are aware of the values of those around you, you will be able to comprehend their behaviour much
better. There would be more empathy and connection.
Last but not least, upholding your ideals would encourage others to do the same. You are granting
everyone, including yourself, complete freedom to be themselves and stand alone.

Summary
A positive, negative, or mixed appraisal of an object expressed at some level of intensity is referred
to as an attitude. It expresses one's positive or negative opinion on a person, place, object, or event.
These are critical factors of our attitudes toward and actions in relation to all aspects of our social
environment. An attitude is a reasonably persistent emotional inclination to react consistently to a
certain object, situation, person, or group of people. In what is known as the ABC model of attitudes,
every attitude has three components: A for affective, B for behavioural, and C for cognitive. The
affective component refers to an individual's emotional response to an attitude object. 'When I think
about or see a snake,' for example, I get afraid.' “a learned predisposition to respond in a
consistently favourable or unfavourable manner with respect to a given object.”  is how attitude is
described. That is, attitudes have a different impact on behaviour than values. Attitudes are formed
through personal experience, information from others, and market-controlled sources, including
mass media exposure. A person's attitude toward an attitude object is determined by his direct
experience with it. An individual's personal experience, whether positive or negative, has a
significant impact on his attitude. It is difficult to change these attitudes that are based on personal
experience.Attitudes are formed as a direct outcome of experience.

UNIT 5: MOTIVATION
Objectives
At the end of this unit, you will be able to:
 Understand concept of motivation
 Understand motivation and behaviour
 Understand the theories of motivation
Introduction
A person's demands, desires, wants, or urges are referred to as their "motives," and the word
"motivation" is derived from the word "motive," which implies the same thing. The process that
originates, directs, and maintains activities that are goal-oriented is referred to as motivation. For
example, it is what propels you to earn that promotion at work or helps you drop the extra weight
you've been carrying around. In a nutshell, motivation is what drives you to behave in a way that
brings you closer to achieving your objectives.
5.1 Concept of motivation
Motivation is derived from the word'motive,' which refers to an individual's needs, desires, wants, or
urges. It is the process of motivating individuals to take action in order to achieve a set of objectives.
Psychological elements that stimulate people's behaviour in the context of work goals include
are desire for money, success acknowledgment, recognition, job satisfaction, teamwork, and so on.
Motivation is an important characteristic that drives people to provide their best effort and
contributes to the achievement of organisational goals. Employees with strong positive motivation
will be able to produce more, whereas those with low motivation will perform worse. Motivation is
an important aspect of personnel management. A motivation is a reason for acting in a certain way.
The degree and direction of behaviour, as well as the variables that influence people to behave in
certain ways, are all aspects of motivation. The phrase "motivation" can relate to a variety of things,
including personal aspirations, how people choose their goals, and how others try to modify their
behaviour. Motivation is the act of a people doing something in order to meet some basic needs. A
manager's job is to inspire his or her personnel to achieve organisational goals by achieving higher
levels of performance.
The boss expects each employee to increase and improve their production. The employee's
behaviour is critical in achieving this. The setting in which employees find themselves has an impact
on their conduct. Finally, an employee's behaviour is a product of his or her natural drives or felt
needs, as well as the opportunity he or she has in the workplace to meet those drives or wants.
Motivating others entails persuading them to take action in the direction you desire in order to
attain a goal. Setting your own direction and then taking action to ensure that you get there is what
self-motivation is all about. Goal-directed behaviour can be defined as motivation. People are
motivated when they believe that taking a certain course of action will lead to the achievement of a
goal and a valuable reward – one that meets their needs and desires.
Individuals with high motivation participate in discretionary behaviour in the majority of positions
where they have control over how much effort they put in. These individuals may be self-motivated.
This is the ideal sort of motivation as long as it implies, they are moving in the proper path to achieve
what they are there to do. Most of us, on the other hand, require some level of motivation.

Characteristics of Motivation
 Motivation is a psychological and personal concept
Motivation is both a personal and a psychological term, thus managers must research the
mental and psychological components of their employees. Motivating factors are usually
unconscious, but they can be awoken by management action.
 Motivation is a Process
Motivation is the process of motivating, energising, lowering, and activating employees to
perform at a greater level. This process begins with unmet needs, progresses through
tension, drives, and goal attainment, and finally concludes with the release of tension caused
by unmet requirements.
 Motivation is a never-ending process
Motivation is a long-term process rather than a one-time event. Because a person's wants
and needs are limitless. Motivating yourself is a never-ending task. There are numerous
desires that cannot be gratified all at once. As the process of meeting needs is never-ending,
so is the process of motivation. As soon as the current demand is met, a new one emerges.
As a result, motivation must be maintained.
 Motivation is a difficult concept to grasp
Motivation is a complicated topic because an individual's needs and desires might be
unpredictable. A person's level of need is determined by psychological and physiological
factors.
 Goal-oriented motivation
The goal of motivation should be to attain the stated goals and objectives. Goal-directed
conduct is caused by motivation, and a person's need motivates him to behave in such a way
that he strives to please himself. From the perspective of the company, the goal is to
increase productivity by improving work performance.

 Motivation is divided into two types: intrinsic and extrinsic.

Intrinsic and extrinsic influences can both encourage a person. Recognition, social status,
self-esteem, and self-actualization demands are intrinsic characteristics that are tied to an
individual's inner qualities. Extrinsic considerations, on the other hand, include physiological
and social demands such as food, shelter, health, education, salary, and benefits, among
others.
 Motivation: Positive and Negative
We use the term "motivation" to refer to positive motivation, which is linked to the process
of motivating employees to perform well. However, motivation does not have to be good all
of the time; it can also be negative at times. Negative motivation is often referred as
punishment, and it is something that employees dislike.
 Motivation is a behaviour-based concept
Motivation is linked to an employee's personal conduct because it is person specific. A series
of acts carried out by an individual in the workplace is referred to as behaviour. The conduct
is aimed at achieving specific aims and objectives.
 5.2 Motivation and behavior
Why is it Motivated?
Describe motive. How does a person's motivation impact their behaviour? We must first define
motivation in order to comprehend how it affects behaviour. In Essentials of Understanding
Psychology, the term "motivation" is defined as "the elements that direct and energise the action of
humans and other species" (Feldman, 2017).

Since motivation is the driving force behind conduct, it has a significant impact on both short- and
long-term hopes and dreams as well as daily emotions. It can influence our conduct positively or
negatively depending on whether there is incentive present.
This research paper emphasises the numerous psychological benefits and drawbacks of motivation,
such as how it can help people achieve their goals, how it can affect daily life, and the repercussions
of lacking motivation.
From Daily Life to Dreams and Hopes
Both daily activities and long-term objectives can be impacted by motivation. Motivation can have
an impact on a person's daily existence as well as their long-term goals and aspirations. Due to the
fact that it can help us achieve a variety of goals and self-desires, motivation opens us a wide range
of possibilities.
Two basic sorts of motivation for achieving goals are task involvement and ego involvement. "Task-
involvement is a motivating state in which a person's purpose is to acquire skills and understanding
as opposed to ego-involvement, where the main goal is to exhibit superior abilities," claims Rabideau
(Butler, 1999).
The mindset required to learn something novel and engaging is task participation. One illustration is
when someone finds the drive to read a book or pick up a new instrument. Ego-involvement is a type
of motivation in which an individual's ego influences them in an effort to achieve self-satisfaction.
When someone competes against other teams, for instance, that is an illustration of this.
Both types of accomplishment motivation encourage people to pursue things they do not currently
own.
Motivational Drives and Instincts
An individual's behaviour might be affected emotionally by motivation. Three basic ideas of
motivation—instincts, drives and wants, and arousal levels—can affect our general outlook on life.
The instinct hypothesis of motivation, which is supported by instincts, which are unchanging and
ingrained patterns of behaviour, is stated on verywellmind.com (Cherry, 2019). Fear, cleanliness, and
love are a few fundamental human motivations that influence behaviour and are critical to a
person's survival. According to the "Drive theory," people have essential biological needs that must
be satisfied. To satiate one's behavioural feelings, there is a certain natural drive to eat, drink, and
sleep. In order to behave optimally, a person must maintain a specific level of arousal or satisfaction.
"A person with low arousal needs would choose calming hobbies like reading a book, while people
with high arousal needs might be compelled to engage in exiting, thrill-seeking behaviours, such as
motorcycle racing," Cherry from verywellmind.com says (Cherry, 2019). These motivational theories
can all have a good impact on someone's emotional conduct. A person's emotional behaviour may
suffer if these motivational drives are not met or fulfilled.
Health and Contentment
The well-being and happiness of an individual can have an impact on their conduct. Happiness is a
result of a variety of elements and causes, but action driven by motivation is crucial. Extrinsic
motivation and intrinsic motivation are two commonly discussed categories of emotions.
Extrinsic incentives are those that come from outside of the person and are frequently
acknowledged by things like awards, money, accolades, or social acceptance. On the other hand,
intrinsic motivations come from an individual's desire to achieve personal fulfilment. Intrinsic
motives include acts of kindness performed from the goodness of one's heart or the satisfaction
derived from solving a riddle.

The cognitive method can also help people achieve personal satisfaction and well-being. "The
cognitive approach to motivation suggests that motivation is the result of people's thoughts, beliefs,
expectations, and aspirations," according to Essentials of Understanding Psychology (Feldman 2017).
A person's level of motivation will rely on their expectations for the situation they are facing. For
instance, someone may be inspired to study for a test because they are aware that doing so will
result in a high mark.
Extrinsic motivation, intrinsic motivation, and the cognitive approach to motivation are only a few
approaches to keep up wellbeing and happiness.

5.3 Motivation and performance

The way by which a management determines the employees to build a position as close as
feasible to the maximum is called motivation, and it is the responsibility of the employee to
motivate themselves. Because it has an effect on performance, managers need to be concerned
with employee motivation. Performance is the target, while motivation is the strategy for
 reaching the objective that has been set. The psychological process that gets workers going,
keeps them going, and dictates the direction and intensity of the effort they put to their jobs is
referred to as motivation. Because of this, they are forced to cease their activity and redirect
their efforts elsewhere. The nature of the work itself and the environment in which it is
performed are major drivers of employee motivation.
If one is motivated, then performance is something that is doable. Personal outcomes can be
attributed to each employee's level of motivation and performance. Employee outcomes, when
aggregated, lead to organisation outcomes such as turnover and profit.
5.4 Theories and models of motivation
Though people have long been fascinated by the concept of motivation, the first real models of
human motivation that are still used today date from the 1940s and 1950s. Many different
motivation theories and frameworks have been published since then. These models are divided into
two categories: content models and process models. Newer types of models have lately been
introduced. However, content and process theories frequently serve as the foundation for these
newer models. Understanding diverse theories of motivation can be extremely beneficial to leaders
and managers at all levels.
There are a variety of competing ideas that seek to explain motivation. These theories focus on three
main components of motivation: a person's propensity, the cognitive process, and the consequences
of a person's actions.
There are three types of motivation theories based on these factors:
 Content/Need based theory
 Process theory
 Reinforcement theory /Outcome theories

1. Content Theory of Motivation

Motivational content theories concentrate on the "what’s" of motivation. They concentrate more
carefully on the various needs that people may have in their lives. People's motivations, according to
the hypothesis, will be centred on gaining the items they believe they require. You can understand
why and how people are driven by understanding their wants and needs.
The oldest of the two schools of motivation theory is the content model school. In management and
leadership training as well as the workplace, content models are currently very popular. These
theories are concerned with determining people's needs and relative strengths, as well as the goals
they seek to meet those requirements

The below are just a few examples of well-known content theories.

 Maslow’s Hierarchy of Needs,
 Herzberg’s Two Factors Theory,
 McClelland’s Theory of Needs, and
 Alderfer’s ERG Theory.

2. Process Theory of Motivation

The “how’s” of motivation are the focus of process theories of motivation. Instead of focusing on
what individuals require, these theories concentrate on human psychological and behavioural
processes. Understanding these processes allows us to comprehend the acts, interactions, and
settings that drive people's activities.
These theories focus on how behaviour is initiated, directed, and sustained, and attempt to identify
the relationship between the dynamic variables that make up behaviour.
The process motivation school is the more recent of the two. These process models are increasingly
influencing leadership and management thought.

The following are some well-known motivational process theories:

 Skinner’s reinforcement theory,
 Vroom’s Expectancy Theory,
 Adam’s Equity Theory, and
 Locke’s Goal Setting Theory.

3. Reinforcement /Outcome Theory of Motivation

This theory attempts to explain why different persons are motivated to work by different forms of
outcomes. It focuses on how the environment teaches us to change our behaviours in order to
maximise positive outcomes while minimising negative outcomes.
The consequences of one's actions are highlighted in reinforcement theory, as well as how these
repercussions impact future motivated behaviour. Several sorts of procedures are detailed, each of
which can be delivered on a different schedule. The three sets of hypotheses, taken together, make
a significant contribution to our understanding of the complex process of work motivation. The
theories also provide practical ideas for motivating employees and boosting performance
effectiveness in management contexts.
The goal of reinforcement theory is to describe how different forms of consequences encourage
people to work. It has been traced back to the pioneering behaviourist B.F. Skinner's work (1953). It
asserts that one's behaviour is determined by the consequences of one's actions. Behaviour that has
positive outcomes is more likely to be repeated, whereas behaviour that has negative repercussions
is less likely to be repeated. Reinforcement theory describes four main ways of modifying behaviour
based on this principle:
1. Positive reinforcement - happens when an action is followed by a positive outcome that
encourages the behaviour to be repeated. A supervisor, for example, might compliment an
employee on a job well done. Praise acts as a positive reinforcer in this circumstance, bolstering
high-quality effort. Recognition, advancement, money, approval, and fringe perks are all popular
positive reinforcers.
2.Negative reinforcement - This occurs when a behaviour is accompanied by the elimination of a
negative consequence, resulting in the behaviour being strengthened. For example, an employee
may stay late at work to rework a sales presentation in order to avoid getting reprimanded by the
supervisor the next morning. Rebuking, in this case, acts as a negative reinforcer, encouraging
avoidance behaviour.
3. Punishment - This occurs when an unfavourable consequence is applied to a certain behaviour.
An example of punishment is suspending an employee from work for two days without pay for
showing up inebriated.
4. Extinction - This occurs when the intended behaviour declines due to a lack of reward. According
to study, when managers cease complimenting employees on their good work, that employee's
performance tends to deteriorate.

Reinforcement Schedules
Reinforcement's effects are strongly influenced by the schedule on which reinforcers are supplied.
Continuous and intermittent reinforcement schedules are the two main types of reinforcement
schedules. Every time the desired behaviour is demonstrated, a continuous reinforcement plan
encourages it. To encourage timeliness in an employee who has a history of being late, the
management might commend the individual anytime he is on time. On the other hand, with
intermittent or partial reinforcement, not every instance of the desired behaviour is reinforced, but
reinforcement is given frequently enough to make the behaviour worthwhile to continue. The
difference between intermittent partial schedules and continuous partial schedules is whether they
are based on time (interval) or on the number of behavioural occurrences (ratio), and whether the
interval or ratio is set or flexible.
Intermittent schedules fall into four categories as a result of the two dimensions:
1. Reinforcement is delivered after uniform time intervals on a fixed interval schedule. Paying a wage
on a monthly basis, for example.
2. Reinforcement is delivered after a set number of responses on a defined ratio schedule. For
instance, being paid by the piece or being offered a day off after serving a certain number of
customers.
3. Interval schedule with variable time intervals - Reinforcement is given after varying time intervals.
4. Variable ratio schedule - After a variable (unpredictable) number of responses, reinforcement is
given. Making a varied number of calls to a potential customer to secure a transaction, for example.

Reinforcement theory's managerial implications

Organizational behaviour modification has been used to apply reinforcement concepts in a
managerial setting (OB Mod). A five-step problem-solving methodology is used in most OB Mod
programmes:
 Identify critical behaviours
 Develop baseline data
 Identify behavioural consequences
 Develop and implement an intervention strategy
 Evaluate performance improvement
Type Name of the Theory Name of the Description
Author

Needs (content) Hierarchy of Needs, Maslow Maslow's hierarchy of needs is a

theory motivation theory that argues that
an individual's conduct is dictated
by five categories of human needs.
Physiological needs, safety needs,
love and belonging needs, esteem
needs, and self-actualization needs
are some of these needs.
Needs (content) Two Factors Theory Herzberg The two-factor theory (also known
theory as Herzberg's motivation-hygiene
theory or dual-factor theory) holds
that certain elements in the
workplace cause job satisfaction,
while another set of circumstances
causes job dissatisfaction. Both sets
of factors act independently of one
another.
Needs (content) Theory of Needs, McClelland Need theory, sometimes known as
theory Three Needs theory, is a
motivational model proposed by
psychologist David McClelland that
aims to explain how people's needs
for achievement, affiliation, and
power influence their actions in a
managerial context.

Needs (content) ERG Theory Alderfer Clayton Alderfer proposed the ERG
theory theory, which is a psychological
theory. Maslow's hierarchy of needs
was further refined by Alderfer, who
categorises the hierarchy into his
ERG theory. The existence category
is concerned with the necessity to
provide people' basic material
needs for survival.
Process Theory reinforcement Skinner BF Skinner and his colleagues
theory, proposed the reinforcement theory
of motivation. It asserts that an
individual's behaviour is a function
of the consequences of his or her
actions. It is founded on the "law of
effect," which states that individual
behaviour with positive outcomes is
 more likely to be repeated, whereas
behaviour with negative
consequences is less likely to be
repeated. Skinner’s reinforcement
theory of motivation ignores an
individual's internal state, i.e., an
individual's inner feelings and
motivations. This theory is entirely
focused on what happens to a
person when he takes action.
Process Theory Expectancy Theory, Vroom According to expectancy theory, a
person will behave or act in a given
way because they are driven to
choose a specific activity over others
based on the expected outcome of
that behaviour.
Process Theory Goal Setting Theory. Locke The preparation of an action plan to
encourage and guide a person or
group toward a goal is known as
goal setting. Desires and fleeting
intentions are less thoughtful than
goals. As a result, making objectives
entails committing one's thoughts,
emotions, and actions to achieving
the goal.

Process Theory Equity Theory, Adam The goal of equity theory is to

determine if the distribution of
resources is equitable to both
partners in a relationship. The ratio
of contributions and benefits for
each person is used to calculate
equity. Equity theory, often known
as Adam's equity theory, tries to
achieve a balance in a workplace
between an employee's input and
output.

Summary
Motivation is an important characteristic that drives people to provide their best effort and
contributes to the achievement of organisational goals. Employees with strong positive motivation
will be able to produce more, whereas those with low motivation will perform worse. Motivation is
an important aspect of personnel management. Motivation is the act of a people doing something in
order to meet some basic needs. A manager's job is to inspire his or her personnel to achieve
organisational goals by achieving higher levels of performance. One of the most crucial aspects of
managerial functions is motivation. If a manager fails to motivate his subordinates, he will fail. It
denotes a readiness to go above and beyond in order to meet the organisation's objectives and
ambitions. It is the driving force behind people's goals, needs, and actions. The following are the
reasons for its significance like human resources effectively utilized, getting the most out of other
resources, availability to work, adaptability to change.There are a variety of competing ideas that
seek to explain motivation. These theories focus on three main components of motivation: a
person's propensity, the cognitive process, and the consequences of a person's actions.There are
three types of motivation theories based on these factors:
 Content/Need based theory
 Process theory
 Reinforcement theory /Outcome theories
Although financial incentives are a typical means of motivating employees, there are other aspects
that influence an employee's motivation. There are several demands that must be met depending on
the individual in order for employees to put more effort into their work. A person's motivation to
work is influenced by a variety of circumstances. Motivational variables can be classified into two
categories:
 Monetary Factors
 Non- monetary Factors

UNIT 6: GROUP BEHAVIOR AND GROUP DYNAMICS

Objectives
At the end of this unit, you will be able to:
 Understand concept and nature of interpersonal behavior
 Understand the concept and nature of group dynamics
 Understand the types of groups
 Understand the stages in group development
 Understand the reasons for the formation of informal groups
 Understand the factors influencing group behavior

Introduction
A group can be defined as two or more persons who interact with one another and are
depending on one another in order to accomplish particular goals. One way to describe the
actions that a group like a family takes as a unit is to refer to them as the group's behaviour.
Group dynamics refers to the social process that underlies how individuals behave and interact
with one another in the context of a group setting. Personality, power, and behaviour all have an
impact on how a group functions, and this has a direct bearing on group dynamics. Is the nature
of the interaction between the individuals helpful in advancing the mission of the group.

6.1 Concept and nature of interpersonal behavior

The conduct and behaviours that occur in interpersonal relationships are referred to as interpersonal
behaviour. Interpersonal conduct includes all aspects of how people interact with one another. Both
verbal and nonverbal clues, such body language or facial expressions, can be used in interpersonal
behaviour. Joking, telling stories to one another, taking directions, and following them are all
examples of verbal interpersonal conduct. Many scenarios require for interpersonal skills, especially
jobs that rely on interpersonal interactions like sales or the healthcare sector. Interpersonal
behaviour is essentially how two people behave while they are together in any situation. The
development of interpersonal interactions is crucial in businesses, as well as in schools and other
educational institutions. When a relationship is strong and enjoyable between two people, or when
the relationship is at its most fundamental level, it will result in appropriate behaviour. Organizations
are ultimately seeking for productive labour, which will come from this behaviour. If there is trust
and a desire to work hard among employees, they can work together to produce excellent
outcomes. These outcomes would include a decrease in the time lag, better performance, and
exceptional working practises. Such actions have a domino effect, even within a school. If two
persons are put in a group task without their consent and are compelled to work together, the
assignment may only be partially finished and the expected outcomes may not be obtained. There
will be two effects of this. First, it will have an impact on the other group members' grades. Second,
it will promote internal hostility and mistrust, which will have long-term consequences for the two
parties involved and those close to them. Numerous academics have devoted a lot of time to
studying interpersonal behaviour. Essentially, the term "interpersonal" refers to the connection
between two people, and how these two people behave toward one another will depend on the
circumstances of their interaction. As an illustration, the interactions between a mother and
daughter will differ from those between a boyfriend and a girlfriend in terms of behaviour. Of
course, interpersonal behaviour isn't just studied in the context of friends and family because it's
widely accepted that a good working relationship between an employer and their employees can
lead to higher levels of productivity. This is why character development programmes have emerged
as a crucial component of business, as they enable greater interpersonal behaviour through
increasing employee trust. Numerous theories exist to explain interpersonal behaviour, and it is
generally accepted that the more individuals work together, the better they will be at appreciating
one another's talents. Not only does it increase the results that businesses can disclose, but it also
raises the general level of satisfaction at work. People will be happier and less inclined to engage in
conflict because they are working with friends and enjoying each other's company. Conflict can
reduce productivity.
The conduct and behaviours that occur in interpersonal relationships are referred to as interpersonal
behaviour. Interpersonal conduct includes all aspects of how people interact with one another.
Both verbal and nonverbal clues, such as body language or facial expressions, can be used in
interpersonal behaviour. Joking, telling stories to one another, taking or giving directions are all
examples of verbal interpersonal activity. Many scenarios require for interpersonal skills, especially
jobs that rely on interpersonal interactions like sales or the healthcare sector.
A social science known as interpersonal behaviour analysis looks at how people interact with one
another.

6.2 Concept and nature of group dynamics

The attitudes and behavioural tendencies of a group are discussed in group dynamics. It can be
used to solve problems, foster teamwork, and help an organisation become more creative and
productive. Along with other professional tools, the idea of group dynamics will give you access
to your strengths, success factors, and measures.
Group Dynamics: Definitions and Meaning
 Group dynamics is the study of the forces that exist inside a group. Group dynamism is inevitable
because humans have a natural urge to belong to a group. We can observe groups of any size
working for the good of a community or organisation.
Group dynamism is the term used to describe the social process by which individuals engage
with one another in small groups. A group shares a set of common aims and objectives.
Members are tied together with specific ideals and culture as a result.
Importance of Group Dynamism
 First, a group has the power to shape its members' perspectives. The interactions of
other group members constantly have an impact on the members. When compared to a
group with a weak leader, one with a good leader does better.
 If a group of people think positively, they can do more than twice as much work each
time, which is known as the synergy effect.
 Additionally, group dynamism might help members feel satisfied in their jobs.
 The group can also foster a sense of unity among the participants.
 Even a member's attitude, thoughts, and ideas are influenced by group dynamic. For
instance, with the facilitator's assistance, negative thinkers can become positive
thinkers.
 Additionally, if the group functions as a unit, collaboration and convergence can
maximise production.
 Additionally, group dynamism might lessen unrest on the job. As a result of the group
members' emotional ties, it also lowers labour turnover.
Nature of Group Dynamics
a) two or more people (if it's just one person, it's not a group);
b) a formal social structure;
c) shared fate;
d) shared objectives.
e) Direct communication;
f) Interdependence;
g) Self-definition as a member of the group;
h) Recognition by others

6.3 Concept and nature of a group

Any collection of individuals who are mutually dependent is referred to as a group. A group is an
important subsystem in any organisation. A group is a collection of two or more people who have
come together to achieve common and shared goals through collaborative effort. Working in a
group isn't always a pleasant experience. Marvin Shaw defined group, “as two or more persons who
are interacting with one another in such a manner that each person influences and is influenced by
each other person.”
Individuals work in collections, which are referred to as 'groups.' In fact, groups play an important
role in people's daily lives. We are members of many different groups at any particular time,
including our family, student club, work groups, sports clubs, professional associations, and political
parties. The average person belongs to five or six different groups at any given moment.
A group is defined as two or more people who consider themselves to be a group and interact on a
regular basis to achieve a similar goal or purpose.
The concepts of 'interaction' and 'influence,' which also limit the size of the group, are critical
aspects of this definition. It becomes difficult for members of a large group to engage effectively.
Managers value groups because groups or work teams are the key tools, they use to coordinate
individual behaviour in order to achieve the organization's objectives. Instead, then explaining a task
to a large number of people and attempting to coordinate their efforts, a manager can assign a task
to a group and allow the group to coordinate its members' activities. A group, on the other hand, will
only function properly if the relationships among its members are fruitful. As a result, managers
must frequently pay attention not only to the requirements of individuals, but also to the dynamics
within the group.

Nature/Features of Group
The following features of a group can be stated based on these definitions.
 Two or More People: A group cannot be formed by a single person. At least two people are
required to create a group. There is no set restriction on the number of people who can
form a group.
 Collective Identity: Each member of the group is acquainted with the others. Each group
member believes that he or she is a member of the group.
 Interaction: The members of the group engage with one another. Each member
communicates with the others through various communication means such as face-to-face
communication, written communication, telephone communication, and communication
over a computer network, among others.
 Common Purpose: Members of the group work together to achieve a common goal or
purpose. In fact, it is the shared goal that connects the members of the organisation
together

6.4 Types of groups

Everyone who works in the organisation is a member of one of the company's various groups. The
goal, extent of structuring, creation method, and size of group membership can all be used to
classify groups. There are two basic approaches to categorise groups into types: formal and informal.
Below is a list of many formal and informal groups.

1. Functional or Formal Groups

 According to A.L. Sercombe, “a formal group is said to be any social arrangement in which
the activities of some persons are planned by others to achieve a common purpose.”

 Formal groups are groups formed by an organisation to fulfil organisational goals. In formal
groups, a member's behaviour is conditioned by the organisation and oriented toward the
organisation's goals.
  These groupings exist permanently. They are constrained by the organisation's hierarchical
authority. They must adhere to the organization's rules, regulations, and policies. The
system necessitates the formation of these groups.

 Departments such as the personnel department, the advertising department, the quality
control department, and the public relations department are examples of formal
organisational groups.

Formal groups can be divided into the following categories.

 Command Group: A command group is made up of a supervisor (manager) and the

subordinates who report to that supervisor directly. As a result, it is defined in terms of the
hierarchy of the organisation. The organisational chart determines which employees are
members of the group. The organisational hierarchy determines the command group. For
example, in the Department of Business Administration at Kumaun University, Nainital, a
command group might consist of the department's Head of Department and other faculty
experts.

 Task Group: A task group is a collection of people who collaborate to fulfil a common goal.
The bounds of a task group are not restricted to its immediate hierarchical superior. It has
the ability to work across command lines. The employee's membership in the group is
determined by the obligations given to him or her, i.e., the employee's responsibility to carry
out specific tasks. Task groups might be temporary and have a set duration, or they can be
indefinite. A task group, on the other hand, can operate independently of command. If a
student is accused of a campus crime at a university, for example, the Head of Department,
the Dean of the school, the Dean of the student's welfare, the Proctor, and the Registrar of
the University may all be involved. It's worth noting that while all command groups are task
groups, task groups can cross organisational boundaries. The reciprocal does not have to be
true.

 Project Group: Project groups are formed in the same way to execute a given project. The
project group's lifespan usually corresponds to the project's duration. A project group is
formed when the University Grants Commission assigns a research project to a university
professor.

 Committees: To handle reoccurring problems, committees are generally formed outside of

the traditional command group structure. A committee's lifespan might be either long or
brief. A group of persons who have been officially delegated to carry out a task, such as
investigating, considering, reporting, or taking action on a subject. A committee is a group of
people who are assigned or elected to consider, report on, or act on a certain issue. It looks
into the issue, analyses it, debates it, and gives recommendations. Advisory authority,
secretary, and other committee members are normally assigned to each committee.
Recommendations are conveyed to the authority in charge of putting them into action. A
University's Examination Discipline Committee, for example, was formed to address
examination-related discipline issues.
 2. Informal Groups

 Keith Davis has defined informal group as, “the network of persons and social relations
which is not established or required for formal organisation”.

 Groups that aren't formal are called informal groups. In other words, these are the groups
that the organisation does not formally create or govern. These are natural arrangements in
the workplace that emerge in response to the desire for social interaction.

 For instance, an informal group is made up of four employees from four different
departments who are eating lunch together.

 Informal groups are formed by members for a variety of reasons that may or may not be
related to the organization's objectives. People tend to create informal groups when they
are attracted together by friendship, mutual interests, or both. These are emotional and
spontaneous groups.

 These are groups formed by employees at their workplace while they are working together.
The organisation has taken no active role in their establishment. Informal groups can be
extremely beneficial and strong.

 Informal groups can be useful as an informal communication network, a component of the

organization's grapevine, and a powerful force that organisations cannot ignore.

The following are examples of informal groups:

 Friendship Groups: Friendship groupings are groups of people that like spending time with
one another. Members of such groups are drawn together by one or more common
features, such as age or ethnicity, political beliefs, religious ideals, and other affinities.

 Interest Groups: Interest groups are made up of people who may or may not be members of
the same organisation (command or task groups), but who are connected by a common
interest. A group of university professors organising a seminar on socioeconomic problems
in the North-Eastern region is an example of an interest group.

 Reference Group: A reference group is a particular type of informal group that people use to
evaluate themselves. A reference group may or may not be a real group that meets
regularly; it can also be a made-up group. The advisory board for a new university's advisory
board. Lecturers, for example, could be academics from other universities who specialise in
the same field.

6.5 stages in group development

Groups usually form in stages. You'll be able to witness the progression when you work with a
support group or nearly any group of people who are working together toward a similar goal.
Knowing what to look for and how to handle obstacles as a facilitator can have a significant impact
on how your group grows. The evolution of a group, like many things, isn't always neat and tidy.
When a substantial shift occurs, a group member leaves or another is joined, or for a variety of other
causes, a group may regress to an earlier stage. Having said that, here's a quick rundown of how
most groups develop and progress.
In order to evolve as a group, Bruce Tuckman presented a five-stage model: Forming, Storming,
Norming, and Performing.

Figure: Bruce Tuckman’s Five-stage Model

1. Orientation (Forming)

 The forming stage is the first step of group development. This stage depicts a period when
the group is just beginning to gel, and it is marked by fear and uncertainty. Members are
discreet in their behaviour, which stems from a desire to be accepted by everyone in the
group. Even though members are beginning to create impressions of each other and gain a
concept of what the group will do together, conflict, debate, misunderstanding, and
personal opinions are avoided.

 Forming as they work to identify group goals and determine appropriate behaviour inside
the group, group members endeavour to get to know one another and build a common
understanding.

 The shaping step usually results in a better understanding of the group's mission, deciding
how the team will be formed and who will be responsible for what, and so on. Discussion of
 significant milestones or phases of the group's aim, including a rough project calendar, laying
down general group norms, such as when they will meet, and determining what resources
will be accessible for the group to use.

 Members of the group are learning what to do, how the group will run, what is expected,
and what is acceptable at this point.

2. Power Struggle (Storming Stage)

 The storming stage is the second stage of group development. Since group members now
have a comprehension of the job and a broad sense of belonging to the group as well as the
group members, the storming stage is when conflict and competition are at their peak.

 The more combative members of the group emerge at this point, while the less
confrontational ones remain in their comfort zone.

 During the storming stage, questions about leadership, authority, rules, policies, norms,
responsibilities, structure, evaluation criteria, and reward systems are common. Such
questions must be addressed in order for the group to progress to the next step.
 Storming occurs when group members refuse to be dominated by the group and disagree
about who should lead the group and how much power the leader should have.

3. Cooperation and Integration (Norming Stage)

 The group has reached a point where it is enjoyable and delightful to be a part of. With fair
give and take, open communication, bonding, and mutual respect, group engagement is a lot
smoother, more cooperative, and productive.

 If there is a disagreement or disturbance, it is quite simple to resolve and the group is able to
get back on course.

 Although group leadership is critical, the facilitator can take a step back and allow group
members to take the lead and move forward collectively.

 Norming occurs when group members begin to feel like they belong to the group and form
deep bonds with one another.
 4. Synergy (Performing Stage)

 Once a group has a firm understanding of its needs, it can go on to the norming stage, which
is the third stage of group growth. This is the point at which the group truly comes together.

 Morale is high at this point, as members of the group openly recognise the abilities, skills,
and experience that each individual provides to the organisation. The group develops a
sense of belonging while remaining focused on the group's mission and aim.

 Members are adaptable, interdependent, and dependable. Members are willing to adjust to
the demands of the organisation because the leadership is distributive.

 Performing the group is ready to handle collective activities and work toward group goals
this is where the actual work gets done.

5. Closure (Adjourning Stage)

 This stage of a group can be perplexing, as it usually occurs after the activity has been done
satisfactorily. The project is nearing its conclusion, and the team members are dispersing in
separate directions.

 This stage examines the team from the standpoint of its well-being, rather than from the
standpoint of leading a team through the initial four stages of team development.

 Adjournment, the group disbands after achieving its objectives.

6.6 Theories of group formation

1. Propinquity Theory:
Propinquity is the most fundamental theory underlying affiliation. Simply put, this intriguing word
suggests that people identify with one another based on their physical or geographic proximity.
Employees in an organisation are more likely to form groups than those who are not physically
located together if they work in the same part of the office or facility, or if bosses have offices
adjacent to one another. The propinquity idea has some study backing, and on the surface, it
appears to be a very viable explanation for how groups develop. This theory has the limitation that it
lacks analytical rigour and does not begin to explain some of the subtleties involved in group
formation. It is necessary to investigate further theoretical and practical factors.
2. Homan’s Theory:
The more activities individuals share, the more interactions they will have, the stronger their shared
activities and feelings will be, and the more sentiments people have for one another, the more
shared activities and interactions there will be, according to George C. Homans.
It is a very thorough theory that is focused on interactions and activities, while Homan's thesis is
based on sentiments. These three components are intimately connected to one another. A group's
members engage and share activities with one another not just because they are close by but also in
order to achieve common objectives.
Interaction is essential because it allows them to form bonds and share feelings. Through the
creation of informal organisations, these feelings are gradually voiced. It is likely that any disruption
to one of the three—activities, contacts, or sentiments—will also disrupt the others.

3. Balance Theory:
A Balance Theory of group formation is another highly thorough theory. According to Theodore
Newcomb's idea, people are drawn to one another because they have similar attitudes toward
shared objectives and things. As soon as a connection is made, it works to keep the attraction and
shared values in symmetrical balance. In the event of an imbalance, efforts are made to correct it.
The partnership ends if the equilibrium cannot be restored.

As a result, the balance theory is additive in that it adds the balancing component to the proximity
and interaction elements. A harmonious relationship between the group members is necessary for
the formation and survival of the group. The balance hypothesis is depicted in the following figure.
Because of their shared views and ideals, individual (A) and individual (B) will engage and eventually
create a relationship or group (C). Once this bond is established, the participants work to keep the
attraction and shared values in symmetrical balance. If there is an imbalance, an effort is made to
correct it. The connection ends if the balance can't be regained.

4. Exchange Theory:
The reward-cost results of interactions form the foundation of this theory. A person considers what
he will gain from interaction with group members while deciding whether to join one. For attraction
or affiliation to occur, a result must have a minimum positive level (rewards greater than costs). In
contrast to costs, which include anxiety, annoyance, shame, or exhaustion, benefits of interactions
satisfy requirements. In the exchange theory, proximity, engagement, and shared attitudes all play a
part.

6.7 Reasons for the formation of informal groups

The many informal groups within the company are open to employees for a variety of reasons. Here,
a few of them are discussed.

Every person has a great yearning for a relationship with other people. Companionship. It is simple
to express one's emotions to friends. Numerous academics have discovered via their research that
persons who have less connection or company at work feel unsatisfied and are more likely to miss
work. People are very unhappy with jobs that require them to go to far locations for work. It could
result in low productivity and subpar quality. Therefore, management makes an effort to appease
them and permit them to rest in groups. People who participate in informal groups so experience
satisfaction as their social requirements are met.
Sensation of identification: Employee morale can be raised by small groups, and members feel
recognised within those groups. Working in large departments where everyone performs the same
type of work is unsatisfactory since it is challenging to maintain personal identity and be social in
large groupings.
Information source: Informal groupings have swift communication. These organisations provide as
sources of information for the group's members. In informal gatherings, information can quickly
spread from one member to all the others.
Job satisfaction: By encouraging employees to work in groups, many tedious and monotonous tasks
are preserved and made fascinating. Working in a team or group fosters motivation and can result in
greater job satisfaction. People are less satisfied with their professions when they work in solitary
environments.
Members are shielded by the added management pressure because they are all group members.
Workers may be under pressure from management to produce more, work longer hours, and
produce goods of a higher calibre. However, the workers' group has the right to refuse if the
requests are legitimate.
An employee's group colleagues provide a safe place for him to vent his dissatisfaction when
necessary. An individual may experience issues at home and at work. He may occasionally become
upset and express his frustration in front of his group members to feel relaxed.
New idea generation: Informal gatherings can serve as a foundation for innovation. It offers the staff
a welcoming environment so they may think creatively and collaborate on those ideas. Workers can
get together on a regular basis to talk about issues like low output and poor quality, and they can
work together to find solutions.

6.8 Functions of informal groups

Because they serve their members' needs, informal groups are necessary. Through group
membership, informal groups assist its members in meeting the following needs.
1. Need for affiliation,
2. Must fortify self-respect and develop a feeling of identity.
3. Need for security
4. The need to support their principles and views,
5. The need for assistance with work-related issues,
6. Information must be obtained, and
7. The necessity of encouraging individual creativity and innovation.

6.9 Factors influencing group behavior

A group is described as two or more interacting, independent individuals who gather together to
work toward specific goals. A number of important elements or factors have an impact on or
influence group behaviours. The main factors are:
Formal leadership: A formal leader is present in almost every work group. Superior, foreman, project
leader, department manager, general manager, chainman, or managing director are popular titles
for these leaders. The success of the group may be significantly influenced by these leaders. They are
also accountable for the group's failure.
All men and women are only actors on a stage, and the world is one big stage. Each member of the
group is an actress, and they are all taking on various parts. A role is the anticipated conduct in a
certain position within a social group. Different individuals are assigned different roles by different
groups. Different ideas regarding our roles in a group are possible.
Role identity: A role is consistent with specific attitudes and behaviours. We refer to this as role
identity.
Role perception is necessary for group members. a person's perspective of their role in how they
should behave in a particular circumstance.
Role expectations are what one should do in a specific situation based on how others act in that
same situation.
Role conflict is a circumstance in which a person is met with conflicting expectations for their role.
Norms: Each group has established some norms. Norms are the accepted norms of conduct that all
members of the group adhere to. All members of an organisation are required to abide by the
formalised norms that are spelled out in organisational manuals. However, informal norms
predominate in organisations.
Status in a group: Status is a social rank or position assigned in a group by others. Our society is
class-structured. The status of group members matters.
Group size: A group's size has an impact on its general performance or behaviour. Smaller groups
work more quickly than bigger ones do to complete tasks. Large groups are preferable to small
groups for problem-solving if the group is encouraged to do so. Therefore, a smaller group will be
more productive if the goal is at hand.
Arrangement of the group: Considering that a group is an association of various personality types
and levels of expertise. It can be more productive to finish a task when a group is heterogeneous
rather than homogeneous in terms of age, gender, race, educational background, personalities,
viewpoints, abilities, skills, and knowledge.
Cohesion within the group Group cohesion refers to how strongly members are drawn to one
another and motivated to stick with the group. Group cohesion has a big impact on how people
behave in groups. The ideas listed below can improve group cohesion:
I. The group was smaller
ii. Increase the amount of time that members spend together.
iii. Promote consensus on the group's objectives.
iv. Improve the group's reputation
v. Encourage rivalry among the groups.
vi. Reward the organisation as a whole rather than individual members
vii. Physically separating the group

6.10 Relationship between group cohesiveness and productivity

Cohesiveness could lead to higher production.
(i) People who work in cohesive groups feel less stress and anxiety at work.
(ii) Highly integrated teams typically experience lower rates of turnover and absence, and
(iii) Cohesiveness reduces the disparities in group productivity.
Studies repeatedly demonstrate that the connection between group performance-related norms
and productivity is dependent on cohesion. A cohesive group will be more productive than a less
cohesive group if performance-related norms are strong. However, productivity will be low if
cohesion is high and performance standards are low.
Productivity increases but less than in a setting where cohesion is high and performance norms are
also high. Cohesiveness and performance-related norms must be high in order for productivity to be
high to moderate.
These conclusions are summarized in the following figure:
A team with high levels of cohesion and poor performance standards is the worst scenario for the
manager. Members are very driven to work here, but only for their own gratification, not for the
objectives of the organisation. Here, the management's ability to successfully steer the actions of a
very cohesive group toward the achievement of organisational goals will determine its success.

The consequences of cohesiveness are now illustrated with the help of the following diagram:

Summary
Interpersonal behaviour is essentially how two people behave while they are together in any
situation. The development of interpersonal interactions is crucial in businesses, as well as in schools
and other educational institutions. When a relationship is strong and enjoyable between two people,
or when the relationship is at its most fundamental level, it will result in appropriate behaviour.
Organizations are ultimately seeking for productive labour, which will come from this behaviour. If
there is trust and a desire to work hard among employees, they can work together to produce
excellent outcomes. Group dynamics is the study of the forces that exist inside a group. Group
dynamism is inevitable because humans have a natural urge to belong to a group. We can observe
groups of any size working for the good of a community or organisation. Group dynamism is the
term used to describe the social process by which individuals engage with one another in small
groups. A group is defined as two or more people who consider themselves to be a group and
interact on a regular basis to achieve a similar goal or purpose.

UNIT 7 POWER, POLITICS, AND STATUS

Objectives
At the end of this unit, you will be able to:
 Understand concept, source, theories and nature of power
 Understand tactics used to gain power
 Understand the concept and nature of organisation politics
 Understand the causes and disfunction of organisation politics
  Understand concept of status and status symbol

Introduction
Since the dawn of civilization, power has been an integral part of human society. Physical, political,
or social power are all possibilities. Power dynamics tend to substantially impact decisions and
people transactions in the corporate world as well. As a result, defining power can be challenging
because it is perceived and interpreted in a variety of ways. However, power is not a force that
delivers you what you want. Power is derived from a position or authority that has the ability to
affect people both positively and negatively. Politics refers to the forces that are tasked with carrying
out one's own agenda or desires. These are the motivations that make us desire people to do things
our way. In other terms, "Organizational Politics" refers to any acts that are not required as part of
organisational obligations but are carried out in order to gain personal power. “The term ‘company
politics refers to all the game-playing, snide, ‘them and us ‘aggressive, sabotaging, negative, blaming,
‘win-lose’, withholding, non-cooperative behaviour that goes on in hundreds of interactions every
day in your organisation

7.1 Concept and nature of power

"Organisational power is the ability that you have to influence the behaviour of another stakeholder
in your organisation. Your power is measured by the extent that you can use your influence to get
that stakeholder to do something that he or she would otherwise prefer not to do" Organisations
work through delegating authority and establishing a framework for exercising power. In business,
people who are highly motivated to gain and use authority will find a comfortable and welcoming
environment. Executives, on the other hand, are hesitant to admit the importance of power in both
individual motivation and organisational connections. Politics and power seem to be bad terms. In
the study of organisational behaviour, power and politics are essential topics. Power and politics are
both dynamic notions that are a result of interactions between many elements inside organisations.
"Power corrupts, and absolute power corrupts absolutely," as the saying goes. Despite this criticism,
power is critical and necessary for organisations since it acts as a fuel, providing energy to run
organisational machinery.
Although power is an invisible force, its impact may be felt. "The ability to influence and control
anything of value to others" is how power is defined. It is the capacity to influence the behaviour of
their employees in the workplace and persuade them to do things they would not have done
otherwise.
German sociologist, Max Weber defined power as “the probability that one actor within a social
relationship will be in a position to carry out his own will despite resistance.”
Aakash's ability to influence Bhavesh's behaviour so that he acts in accordance with Aakash's wishes
is referred to as power. It's worth noting at this point that power refers to Aakash's ability to
influence Bhavesh, not to Aakash's right to do so; power implies no right
According to Kingsley Davis, “Power as the determination of the behaviour of others following one’s
own ends."

Nature of power
 Dependency: Dependency is a basic feature of power. A person can only have power if he is
able to influence the wishes of others. Children in college, for example, are completely
 reliant on their parents to cover their education expenses. Parents' dominance is recognised
by the youngsters in this scene. Parents' control diminishes dramatically after their children
find a job and begin to earn money on their own.

 Power has a definite definition: It indicates that power can only be exercised by a few
people, and only under certain conditions. It demonstrates that power cannot be wielded by
everyone at all times. For different people, the domain of power is different. This could be
higher or lower in some cases.

 Relationships of reciprocity: In organisations, power relationships are primarily reciprocal. It

is incorrect to say that only top-level officers enjoy power. Even if there are disparities in the
degree and amount of power, everyone enjoys it. Only in a connection between two or more
people does power exist. It is founded on the two-way principle of influencing and being
influenced by others. The ability to influence someone else is referred to as power. The
process of influencing another person's thoughts, behaviour, and feelings is known as
influence.

7.2 Difference between power and authority

On the following grounds, the distinction between power and authority can be clearly drawn:
 Power is described as an individual's ability or potential to influence and control the
behaviour of others. The legal and formal right to issue instructions and directions, as well as
make choices, is known as authority.

 Authority is a formal right that vests in the hands of high officials or management staff,
whereas power is a personal feature, i.e., a learned skill.

 Knowledge and expertise are key sources of power. Position and office, on the other hand,
determine a person's authority.

 Power can flow in any direction: upward, downward, across, diagonally, or laterally. In
contrast to authority, which only runs in one direction, namely downward (from superior to
subordinate).

 The power is in the person; in other words, a person gains it; but authority is in the
designation; whoever receives the designation also receives the authority associated with it.

 Power is not legitimate, but authority is.

7.3 Sources of power

Five determinants of power were recognised by John R. P. French and Bertram Raven: legitimate,
reward, coercive, expert, and referent power.

 Legitimate Power: Legitimate power comes from a person's position inside an institution.
Managers are given the authority to direct the actions of their subordinates by the
organisation. Legitimate power is analogous to formal authority in that it can be given,
 altered, or revoked by a formal institution. The organization's structure also determines the
legitimacy of lawful power based on position location. In a traditional hierarchical
organisational structure, for example, higher-level roles wield more authority than lower-
level positions. Individuals are given varying degrees of legitimate power by organisations.
Everyone knows who has the most authority in such groups, and few people dare to
confront the power structure.

 Reward Power: This is the amount of control that one person has over incentives that are
valued by another. The more the authority, the higher the perceived worth of such benefits.
Pay, promotions, and valuable office assignments are examples of organisational rewards. A
manager with complete control of such incentives wields considerable power. Managers
that utilise praise and reward to motivate their employees have a lot of power.

 People have coercive power if they have authority over a type of punishment, such as the
threat of dismissal, suspension, demotion, or other sort of public humiliation. A boss may be
able to bring psychological injury to an employee. The number and severity of sanctions over
which a management has control improves the manager's coercive power. Although using
coercive authority can be effective in the short term, it generally breeds resentment and
enmity, and hence is usually counterproductive in the long run.

 Expert Power: is more personal than corporate in nature. Expert power is the ability to exert
influence as a result of one's expertise, exceptional skill, or knowledge. When the expert
threatens to withhold his information or talent, he gains this power. Because a person who
is difficult to replace has more power than someone who is easy to replace. If subordinates
believe their superior is competent and knowledgeable, they will automatically obey and
appreciate him. A low-ranking employee is likely to have more authority if he has crucial
information that a higher does not.

 Referent Power: A person with referent power over others is someone who is respected by
others for any reason. People who regard a person with referent power may have charisma,
and those who respect him or her are more inclined to become emotionally involved with
him or her, identifying with, accepting, and eager to follow him or her. The acts, attitudes,
and clothing of people having referent authority are frequently mimicked by others. This
impersonation illustrates the burgeoning star's dominance over impersonators.

7.4 Traits of successful power users

1. Self-Management
If you can't effectively manage yourself, it's difficult to manage others. Self-management entails
being able to prioritise your goals and taking accountability for achieving them. You must be able to
manage your time, attention, and emotions while keeping conscious of your strengths,
shortcomings, and potential sources of bias if you want to be an effective leader.
Outstanding leaders have a knack for managing stress and juggling their personal and professional
obligations. But you must also keep in mind the value of compassion and be able to react
appropriately to people and situations. Keep in mind to exercise restraint and discipline in your
behaviour, but avoid being unduly rigid or guarded.
2. Taking Strategic Action
For today's leaders, a forward-thinking, open-minded mindset is essential. Leading Now: Critical
Capabilities for a Complex World, a paper from Harvard Business Publishing, states that "leaders
must always be prepared to alter their strategy to capture emergent possibilities or face
unanticipated difficulties." An ongoing part of strategic thinking is analysing your business
environment. Develop your capacity for strategic thought by
• Having genuine curiosity in your business and the larger industry.
• Being adaptable in your thinking and experimenting with new methods and concepts,
• Looking toward the future and considering the current operational circumstances of your business,
and
• Keeping an optimistic frame of mind.
3. Having Good Communication Skills
Strong leaders are able to balance speaking and listening. They can concisely and effectively
communicate to their staff everything, from organisational goals to individual responsibilities,
because they are skilled communicators. The more explicit you can be, the better, since if individuals
don't comprehend or aren't aware of your expectations, they will fall short.
You must be able to communicate effectively on all fronts, including one-on-one, with the
department as a whole, and through the phone, email, and social media. Work on being
approachable and involving individuals from different levels since communication is based on a
continual flow of verbal and nonverbal exchanges of ideas and information.
4. Taking Responsibility And Accountability
Successful managers understand how to effectively use their position of authority and control
without intimidating or dominating their staff. Effective leaders expect others to follow suit by
holding themselves accountable and accepting responsibility for their own errors. They are able to
make effective decisions while following established procedures.
They recognise the value of fostering and promoting individuality while simultaneously being aware
of organisational structures and the necessity of adhering to rules and standards. They can maintain
a balance between many points of view while acting appropriately.
5. Making definite goals and sticking to them
Here is a condensed version of how to become charismatic: Be steadfast and focused in the pursuit
of your clearly defined goals. Support it all with unwavering confidence. People will be drawn to you
if you exude excitement and are sincere about what you're doing.
Keep in mind that setting goals in writing is essential to your success and the success of your
business. But it takes time to reach those objectives. Everyone around you will give up if you do.
When others are tempted to give up, you must be prepared to press on if you want to be a
successful leader.
6. Possessing an outlook towards the future
Outstanding leaders are able to envision the future of their organisation and set definite, actionable
goals that will be advantageous to it. They exude assurance and optimism, which energises others
around them.
Managing change while striking a balance between stability and growth is what it takes to be a
visionary. You must adopt fresh strategies without straying from the primary objectives.
Being a visionary involves seeing that things are constantly changing, so what worked in the past
might not work now. As you execute new initiatives and permit your business model to change over
time, practise being flexible and nimble.
7. Managing Complicatedness
Leaders need to be problem solvers with the ability to make choices in situations that are always
changing. Any leader needs to learn how to lead in a complex setting. Effective leaders must
evaluate the complexity of a situation and decide on the best courses of action even before any
conclusive information is available.
That entails being able to scan the environment for subtle patterns and signs of disruptive change
and setting up procedures that enable your firm to react quickly, according to a Harvard Business
Publishing research.
8. Promoting Innovation And Creativity
Leaders need to have the guts to support innovation and risk-taking. By doing this, you will
encourage the creativity that will guide your company to new locations and around the curves of a
shifting business landscape.
The secret is to always be tenacious in pursuing your objectives, as well as flexible and open-minded
in how you get there. Encourage others around you to spend at least 15% of their time
brainstorming and prototyping fresh concepts.
9. Fostering Teamwork And Building Teams
The people surrounding you are the foundation of effective leadership. Leading a diverse and special
group of individuals with different personalities, motives, and abilities requires team development.
Many of the items on this list, like fostering creativity, effective communication, and fulfilling your
organization's goals, depend on strong teams and teamwork. You may build an unstoppable force
that will propel the development of your company if you select and nurture the correct staff.
10. Forming Long-Lasting Bonds
A compelling leader can drive their team to work tirelessly toward the company's objectives in
addition to simply inspiring others to follow them. Employees will be motivated to work harder to
achieve success for the firm if they feel valued, appreciated, and like what they do matters.
Outstanding leaders are aware of the importance of networking for the success of their company as
well as their personal professional advancement. Leaders forge meaningful connections with
consumers, clients, partners, and even competitors by building a broad and diverse network of
people.
11. Quickness to Learn
The best leaders understand that their capacity for adapting to abruptly changing circumstances and
their ability to recognise and seize opportunities in a changing environment are the foundations of
their leadership.
Your ambition to always learn and develop will be fueled by having an insatiable curiosity. Learning
agility depends on the development of critical thinking abilities, acceptance of ambiguity, social and
emotional intelligence, and a constant will to go forward.

7.5 Mulder’s theory of power distance

Mauk Mulder conducted extensive research on power distance. [14] It was founded on the idea that
as societies lose power distance, the disadvantaged will start to reject their dependence on it.
People strove to reduce their "power gap," according to Mulder's laboratory studies conducted in
the low power distance culture of the Netherlands' social and organisational context. He discovered:
More powerful people frequently work to maintain or increase their distance from inferiors.
The more the authority holder tries to distance themselves from a subordinate, the greater their
power gap is from them.
The power gap between weaker people and their superiors is attempted to be closed.
The closer the power distance is, the more likely it is that weaker people will try to close it.

7.6 Tactics used to gain power

1. Bargaining: Bargaining is the use of talks in which rewards or favours are exchanged. The party
with stronger negotiating power is able to obtain benefits greater than the costs incurred.
Negotiations between labour and management lead to collective bargaining agreements.
2. Friendship: By using flattery, building goodwill, acting modestly, and being nice before making a
request, a person can obtain control over another person.
3. Coalition: A coalition is an ad hoc alliance of two or more people working together to achieve a
common objective. Members of a coalition can have more influence over groups that are not
members of the coalition by creating a coalition. In most organisations, coalitions are utilised to
influence goal-setting and benefit distribution to constituents.
4. Competition:
Various groups compete with one another for a larger share of the limited resources available in the
organisation. For this, they make an effort to sway the standards that are used to determine how
resources like money, space, support personnel, etc. are distributed. Each group makes the case for
the standards that are most likely to give it more influence.
5. Cooptation:
In a cooptation programme, a group distributes some of its key posts to members of other groups or
includes them in its committee that formulates policy. Thus, those other groups' criticism and
threats are lessened. For instance, in order to preserve dependable connections with the financial
institutions, firms typically include representatives of the financial institutions in their board of
directors.
6. Reason:
A person has the ability to control people through argument. Utilizing facts and data to
communicate ideas in a logical or sensible manner constitutes reasoning.
7. Assertiveness:
Being assertive entails taking a forceful and straightforward stance. The manager may issue harsh
instructions, reiterate commands, direct people to follow instructions, and emphasise that rules
must be followed.

8. Greater Power:
When making requests of their subordinates, certain managers may be able to secure the backing of
higher ups in the organisation.
9. Sanctions:
Traditional methods of reward and punishment make up sanctions. By promising or withholding a
wage increase, demoting or promoting someone, or by threatening to give them a performance
review that is less than favourable, one person can establish control over another.
10. Pressure:
Power struggles in contemporary organisations sometimes include the use of pressure techniques. It
is an adversarial strategy for taking control. For instance, if the management does not agree to the
unions' demands, strikes may be threatened. On the other side, if the trade unions reject its
demands, management may threaten a lockout at the factory.

7.7 Concept and nature of organizational politics

Organizational politics is frequently referred to be "power in action." The term "organisational
politics" refers to people's informal attempts to exert influence in organisations through managing
common meaning. As a result, politics should not be regarded as an intrinsically good or evil
phenomena, but rather as something to be observed, analysed, and comprehended in order to get a
better understanding of organisations and how they operate. Every group or organisation has a
political agenda. Politicking is overt and pervasive in some organisations, while it plays a little role in
influencing outcomes in others. Organisational politics is an unavoidable aspect of doing business.
Employee organisational commitment, job happiness, and performance suffer in organisations that
are driven by unhealthy levels of political activity, as well as greater levels of job anxiety and
depression. Political talent, internal locus of control, high investment in the organisation, and
expectations of success are all individual antecedents of political behaviour. Scarcity of resources,
role ambiguity, regular performance assessments and promotions, and democratic decision-making
are all organisational antecedents. Informal, unofficial, and sometimes behind-the-scenes efforts to
sell ideas, influence an organisation, gain control, or achieve other specific goals are referred to as
organisational politics. Politics has been a part of human history for millennia. Politics, according to
Aristotle, is the result of a multiplicity of interests that must be resolved in some way. When
objectives are fundamentally incompatible, “rational” decision-making may not be enough, resulting
in political behaviours and influence methods. Organizational politics is a behind-the-scenes strategy
for gaining and displaying influence. It refers to the influencing techniques and actions used in the
workplace to maintain personal control. Employees are most commonly observed using
organisational politics as a tactic to abuse their position, achieve excessive popularity, and damage
the image of someone else in their organisation. One important aspect to remember about
organizational politics is that it always results in negativity and a loss of productivity.
Organizational politics is often portrayed as a bad thing; however, this is not always the reality.
Working in an organisation is difficult because it necessitates the ability to effectively manage
shifting power bases and competing objectives. It's not just about winning and ruling supreme at all
costs in organisational politics; it's also about preserving and managing connections in order to
achieve desired outcomes.
 Features/ nature of Organisation Politics

7.8 Causes of politics in organisations

Politics emerges when employees try to get something they don't have control over by ruining the
reputation of a colleague. Employees who are involved in office politics have been seen to pay less
attention to their work. Individuals engage in office politics when they abuse their influence in order
to seek attention from their superiors and management. Politics produces nothing useful; instead, it
breeds criticism and negativity in the workplace.
Politics generates stress and sabotages interpersonal relationships. Organizational politics has a
variety of reasons:
 People who want to be in the spotlight without putting in a lot of effort rely on politics
There are some people who go to work only for the purpose of going to work and do not
believe in working hard. Such people have no choice but to rely on nefarious politicians.
They go to great lengths to paint a poor picture of their co-workers in order to gain favour
with management.
Say for instance- Mikey, Joe, and Tim represented a multi-national organization's branding
team. Mikey and Joe gave their maximum effort at work, however Tim believed in
destroying their reputation in front of their boss, Jack. Jack had entire faith in Tim and put
his trust in him. He never gave Mikey and Joe enough credit and always blamed them for
anything that went wrong. Tim, on the other hand, was promoted to the position of team
leader.

 Do not want to put forth a lot of effort

 Many people want everything life has to offer, and often even more, without putting up the
effort to acquire it via hard work. These people are always on the lookout for a quick
method to get into the spotlight without exerting too much effort. Organizational politics is a
weapon they use to paint a bad picture of the people they believe are stumbling blocks in
their path.

 Unable to adapt to change

Change is a reality of life in any organisation, and personnel must be willing to embrace and
work with change. Some employees are unable to recognise the changes, which causes them
anxiety. When there are winners and losers as a result of change, the losers will lash out
with underhanded and sneaky tactics to denigrate those who have voluntarily and cheerfully
accepted the changes in the workplace.

 Relationships with others

Personal relationships have no place in the professional sphere, and people must maintain a
separation between their personal and professional lives. Supporting someone with whom
you have a good relationship is frequently perceived as leading you down the wrong path,
and at the end of the day, it becomes a source of organisational politics.

 Inconsistency
Lack of clarification leads to accusations, which fuels the rumour mills to work overtime.
Although the assumptions and perceptions are based on no facts, they frequently rise to
organisational politics.

 Manipulations
If someone wishes to deceive their superior, they will use organisational politics to modify
information and pass the erroneous one.

 Jealousy
If someone is sharper than others, and especially if his efforts are praised by the top brass,
jealousy is certain to arise among co-workers. This leads to organisational politics, as the rest
of the employees try to smear his reputation within the corporation.

 Lack of faith
The lack of trust amongst co-workers is a major factor in company politics. Employees do not
want their co-workers to receive more attention and recognition for their efforts, so they
engage in office politics and seek for ways to harm their image and reputation in the firm.

 The game is to blame

It is vital to talk relevantly without criticising others, although this does not always occur.
People are prone to overlooking own flaws and blaming others instead.

 Gossips
One of the causes of office politics is employees' habit of engaging in pointless gossip about
co-workers, colleagues, and other members of the organisation.

 The battle for power

One of the most common causes of organisational politics is a struggle for dominance within
a corporation. As one climbs the corporate ladder, the chances of rapid advancement
diminish. Individuals strive to prove themselves and attain the pinnacle of their profession.
 Employees who lack confidence tend to show off their superiority by taking advantage of
others. As a result, employees’ resort to unethical measures to prove their worth in the
workplace.

 Promotions are harder to come by

When multiple employees compete for a promotion but only a few seats are available, this
results in organisational politics. Ambitious employees are prone to being hostile, and in
their haste to achieve the desired position, they begin to spread suspicion and rumours
about others. This fosters an environment of distrust, which is harmful to the organization's
health.

 System of rewards
Most businesses have a variety of incentive programmes in place to motivate staff to
perform at their best. This concept can backfire if everyone is striving for the ostensible
benefit.
This creates unhealthy competitiveness, with employees destroying the work of their co-
workers in their quest to outperform the competitors. At the end of the day, the reward
system becomes a major source of organisational politics.

 Changes at the top levels

When a new position at a higher level is announced, people get busy in order to earn
brownie points. After a certain point, it's no longer only about placing themselves as the
best, but also about insulting, badmouthing, questioning abilities, and ruining colleagues'
reputations. Getting ahead of others by any means necessary leads to the worst kind of
organisational politics.

7.9 Disfunction of organization politics

Risks to performance and bad politics
• When staff members experience discrimination, harassment, or underappreciation, they could
turn to one
or one or more of the dangerous alternatives below:
o Leaving for the competition
· Take steps to undermine the business, such as revealing private information with
either rivals or the media
o Workers may grow emotionally disconnected and lose interest in the company's success.
the business
o They'll act passive-aggressively, stop cooperating, put forth less effort, or
produce mediocre results
• The company will lose key personnel. Good, honest workers typically lack the abilities or
ability to function in a highly political setting.
• The business gains a reputation as being political and difficult to work for.
to effectively compete, it is harder to find good talent.
• Employees will get demotivated and lose hope. When the leadership develops sound strategies,
They encounter resistance and distrust.
Conclusion: There will be a decline in business performance.
When employees stop believing in a firm, that is the worst thing that could happen to it.
a leadership group.
The two crucial inquiries every leader needs to ask are:
• How many of the aforementioned signs do we observe in our company, department, or
teams?
• How can team performance and workplace politics be managed most effectively?
Patrick Lencioni, a consultant and public speaker, wrote a business book titled The Five Dysfunctions
of a Team that was first released in 2002. It discusses the various difficulties teams run through
when attempting to "grow together." The underlying causes of team failure and organisational
politics are examined in this book. The majority of it is written as a business parable, like the majority
of Lencioni's works. The New York Times Best Seller List, Business Week, Wall Street Journal, and
USA Today are just a few of the American best-seller lists where this book has been mentioned.
The problems it outlines were thought to be particularly crucial to team sports. Several coaches in
the National Football League in the United States adapted the principles from the book to their
teams.
7.10 Concept of status
Since Ralph Linton's groundbreaking writings in 1936, status and role have taken centre stage in
sociology. When Linton used the terms "status" and "role," he meant a place in a social structure
with specific rights and responsibilities and behaviour that is tailored to meet those expectations.
Linton continued by stating the widely accepted and fundamental truth that each person in society
necessarily holds a number of statuses, each of which has a certain duty.
Each member of every society and every group has a role or activity with which he is linked and
which carries some level of authority or reputation. We typically refer to an individual's role as what
he does or accomplishes. His status is the level of renown or authority. Statuses and roles are
connected.
In some ways, "status" and "role" refer to the same thing. Role, or the actions or activities connected
to or ascribed to a position, is thus the dynamic part of status, as Linton stated. Status and role are
thus two sides of the same coin. Simply said, it indicates that the two are interconnected and that
neither can exist without the other.
In contrast to the concrete descriptive terms they have reference to, social status and role are
analytical terms with a more general aspect. Such analytical phrases are preferred by sociologists
over descriptive terms like "bus conductor," "client," "father" or "mother," etc. These two concepts
have evolved into the fundamental components of structural-functional theory after Linton. Later, a
large number of sociologists developed and expanded upon these two words.
For instance, role theory proponent R.K. Merton (1968) deviates from Linton's interpretation of
status and role. According to Merton, each social position has a number of roles that collectively
make up what he refers to as a "role set," rather than just one linked role.
The fundamental cornerstones of any social structure or social system are the ideas of status and
role. Parsons claims that the'status-roles' that make up society are its subunits. An actor who
participates in a social system is "placed" in relation to other actors. His "status" is as of now. He
performs a variety of tasks in this role, which is referred to as his "role." According to him, the
proper social system unit is the "status-role." A social system can be conceptualised as a network of
statuses and the roles that go along with them.
What is Status?
A status is, simply put, a socially determined position within a community or a social system, such as
being a woman, student, teacher, child, parent, etc. Other people anticipate a status holder to act
differently depending on the circumstance. The father-child relationship is reciprocal and grants
each a place in the family unit. Status always implies a group; position is always relative. Every status
comes with a set of obligations, rights, and benefits.
The position consists of two main elements:
(1) Expectations and commitments made by other members regarding the conduct of the office
holder;
(2) The reasonable or appropriate expectations of the post holder regarding the conduct of other
members. Johnson refers to the first component as the function of a position and the second as the
status of a position. It implies the prestige of a position or an individual.

7.11 Handling organizational politics

Finding the correct balance is the most important guideline for managing organisational politics. The
following are some tactics that can be used in this endeavour.
 Keep your primary ideals in mind: Recognize and accept your essential principles so that
sticking to them becomes second nature despite differences. Knowing what is crucial in life
creates a sense of purpose, which is important from a values standpoint. This makes it easier
to deal with organisational politics in a positive way.

 Understand the organization's politics: Politics is undeniably ingrained in the workplace

culture. There's an old adage that if you can't ignore it, at least comprehend it so you can
play the game fairly and emerge victorious.

 Recognize where your power comes from: The first step is to understand the true origins of
both informal and formal power. Who is the game-changers, the one or a few people who
give up the stick and change the game? It's also crucial to be aware of the players that
operate behind the scenes and have the power and resources to influence high-ranking
officials.

 Develop your interpersonal skills: Cross to the opposite side to create contacts with
executives, managers, and co-workers from other departments. Look outside your comfort
zone and immediate team members. To align with all types of people, you must know and
build high-quality connections. Developing people skills entails never betraying another
person's confidence or secrecy. Be emotionally intelligent so that your interpersonal abilities
serve you well and aid in the formation and maintenance of relationships.
  Pay close attention to what is being said: If you're seeking for techniques to manage
organisational politics, you'll need to be a good listener. It's like devoting valuable time to
slowing down and concentrating on important matters.

 The organization's priorities: Make sure you are informed of the organization's preferences,
as this will assist you in making selections. When you know what is important and what isn't,
you can disregard the things that don't matter and focus on the things that do.

 There are no written rules: In the workplace, there are well-understood norms of conduct
that should be followed. The best method to deal with organisational politics is to find and
observe the unwritten rules at all costs; else, serious consequences can result.

 Rewards and consequences: Some behaviours are praised and rewarded, while others can
have negative effects. If you want to master managing organisational politics, you should get
to know them from the start. If you are unaware of these facts, you are likely to fall prey to a
co-worker’s manipulation.

 Be proactive in your approach: Being proactive entails forming a support network of people
who will be there for you no matter what. It entails having clout in a system that relies on
dirty tricks to win. A strong network can lead to important alliances that can provide
valuable insight into the opportunities and problems that may arise. It serves as an early
warning system for people who have the potential to drag you down, allowing you to be
aware of their activities from the start. Being proactive in the workplace is important
because it helps an employee fight for his or her position or convey his or her point of view.
One of the most effective methods to manage organisational politics is to be ethical and
proactive.

 Be protective: Protectiveness does not imply that you must go out and protect someone
else; rather, it entails being aware of your surroundings and safeguarding yourself against
people who may turn on you at any time. It entails not being foolish or having blind trust,
but merely always alert. To protect himself from dirty and underhanded activities and
effectively manage organisational politics, an individual must be knowledgeable enough to
comprehend nuances in the workplace.

 Prepare yourself: If an individual is seeking for techniques to manage organisational politics,

he must be prepared to encounter hurdles. Never ignore what's going on around you or
assume everything is fine when it isn't. Prepare for the worst if you haven't made alliances
yet, since this will keep you on your toes. Even if you have so-called supporters, never put
your faith in them since, like politics, there are no true friends and foes in the workplace;
instead, it is the environment that makes friends and turns true supporters into rivals.

7.12 Concept of status

Since Ralph Linton's groundbreaking writings in 1936, status and role have taken centre stage in
sociology. When Linton used the terms "status" and "role," he meant a place in a social structure
with specific rights and responsibilities and behaviour that is tailored to meet those expectations.
Linton continued by stating the widely accepted and fundamental truth that each person in society
necessarily holds a number of statuses, each of which has a certain duty.
Each member of every society and every group has a role or activity with which he is linked and
which carries some level of authority or reputation. We typically refer to an individual's role as what
he does or accomplishes. His status is the level of renown or authority. Statuses and roles are
connected.
In some ways, "status" and "role" refer to the same thing. Role, or the actions or activities connected
to or ascribed to a position, is thus the dynamic part of status, as Linton stated. Status and role are
thus two sides of the same coin. Simply said, it indicates that the two are interconnected and that
neither can exist without the other.
In contrast to the concrete descriptive terms they have reference to, social status and role are
analytical terms with a more general aspect. Such analytical phrases are preferred by sociologists
over descriptive terms like "bus conductor," "client," "father" or "mother," etc. These two concepts
have evolved into the fundamental components of structural-functional theory after Linton. Later, a
large number of sociologists developed and expanded upon these two words.

For instance, role theory proponent R.K. Merton (1968) deviates from Linton's interpretation of
status and role. According to Merton, each social position has a number of roles that collectively
make up what he refers to as a "role set," rather than just one linked role.

The fundamental cornerstones of any social structure or social system are the ideas of status and
role. Parsons claims that the'status-roles' that make up society are its subunits. An actor who
participates in a social system is "placed" in relation to other actors. His "status" is as of now. He
performs a variety of tasks in this role, which is referred to as his "role." According to him, the
proper social system unit is the "status-role." A social system can be conceptualised as a network of
statuses and the roles that go along with them.
What is Status?
A status is, simply put, a socially determined position within a community or a social system, such as
being a woman, student, teacher, child, parent, etc. Other people anticipate a status holder to act
differently depending on the circumstance. The father-child relationship is reciprocal and grants
each a place in the family unit. Status always implies a group; position is always relative. Every status
comes with a set of obligations, rights, and benefits.
The position consists of two main elements:
(1) Expectations and commitments made by other members regarding the conduct of the office
holder;
(2) The reasonable or appropriate expectations of the post holder regarding the conduct of other
members. Johnson refers to the first component as the function of a position and the second as the
status of a position. It implies the prestige of a position or an individual.

7.13 Sources and determinants of status

Ascribed status is often determined by sex, age, race, familial ties, or birth, whereas attained status
may be determined by education, occupation, marital status, or other characteristics.
1) A person's influence on others.- Because they likely manage the group's resources, those who
control group results are typically viewed as having a high social position.
2) A person's ability to contribute to the achievement of a group's objectives. - Individuals whose
contributions are crucial to the group's success typically have high status.
3) An individual's personal characteristics. - A person with a higher status is often one whose
personal features are positively valued by the group (excellent looks, intelligence, money, or a nice
disposition).

7.14 Functions of the status system

Operational Status
Regardless of the status of the event, you can monitor the development of specific functions using
function statuses. One of three states are possible for functions:
Planning
Ready
Canceled
Following is our suggested path via the function statuses:
Develop applications that use the planning status (this can be your account default). Include
products, directions, room layouts, and other information. Unless explicitly selected, functions
having a Planning status won't show up on the Operations screen.
Set a function's status to Ready once it has been fully described. Changes to the function and details
will now begin to be recorded if you selected Detail Change Tracking, and you may also send an
email notification about changes to ready functions. Now, the Operations view will also provide
these features.
Change a function's status to Canceled if it will no longer take place. When examining changes in the
Operations view, this will keep the function for reference or billing and also show as cancelled. You
should be aware that you will only be able to cancel Ready functions, not remove them, if your
account's default status is Planning. In this case, we assume you are utilising this workflow.
7.15 Status symbols
Even while status symbols evolve over time, they are almost always connected to the fundamental
divisions between upper and lower social strata.
Status symbols in capitalist society are frequently connected to material prosperity. Status symbols
might alter depending on where they are used. For instance, a physical scar may signify honour or
bravery in cultures where warriors are revered, becoming a status symbol.
Status symbol types
Pricier Items
Lower income groups typically cannot afford expensive items like luxury cars and watches that can
cost more than a down payment on a home. They have evolved into status symbols as a result.
Since a significant portion of the benefit of status symbols is derived from their high price, an
increase in a status symbol's price may actually enhance rather than decrease demand. A Veblen
good is a product that displays this behaviour.
Uniforms
A uniform that denotes membership in a group, such as the military or law enforcement, is another
type of status symbol. Additional rank, speciality, tenure, and other information about the owner's
standing within the organisation may also be displayed on a uniform. A state may award badges,
medals, or decorations that can signify a wearer's official or heroic position.
Dress rules may be used in various cultures to dictate who should wear what kinds of clothing, when
certain clothing should be worn, and where it should be presented. In the professional world today,
wearing particular brands of ties, suits, or shoes confers status on the wearer.
7.16 Problems caused by the status system in an organization
With the use of Indeed's data and insights, the Indeed Editorial Team is a diverse and brilliant group
of authors, researchers, and subject matter experts who provide helpful advice for navigating your
career journey.
Some businesses may find it difficult to get past organisational problems as they work to manage
and enhance their everyday operations. Recognizing a problem and determining its cause is the first
step in resolving organisational problems. Finding the root causes of problems and coming up with
the right remedies for each one takes time, but it's an essential step for any business that wants to
develop and expand in a healthy way.
Why is it crucial to fix organisational problems?
Both the organisation and its employees can greatly benefit from identifying and fixing
organisational problems. The sooner you can fix organisational problems, the sooner you can make
your office a healthy place to work and devote more time and resources to other business-related
concerns. Good organisational practises encourage a feeling of success and accomplishment within
the business. Organizational improvements can also serve as inspiration for a company to keep
pursuing novel approaches or implementing preventative measures to stay ahead of similar
problems in the future.
1. Turnover
2. Productivity
3. Process management
4. Role specification
5. Customer satisfaction and relationships
6. Innovation
7. Teamwork

Summary
"Organisational power is the ability that you have to influence the behaviour of another stakeholder
in your organisation. Your power is measured by the extent that you can use your influence to get
that stakeholder to do something that he or she would otherwise prefer not to do" In the study of
organisational behaviour, power and politics are essential topics. Power and politics are both
dynamic notions that are a result of interactions between many elements inside organisations.
"Power corrupts, and absolute power corrupts absolutely," as the saying goes. Despite this criticism,
power is critical and necessary for organisations since it acts as a fuel, providing energy to run
organisational machinery. ." The term "organisational politics" refers to people's informal attempts
to exert influence in organisations through managing common meaning. As a result, politics should
not be regarded as an intrinsically good or evil phenomena, but rather as something to be observed,
analysed, and comprehended in order to get a better understanding of organisations and how they
operate. Every group or organisation has a political agenda. A status is, simply put, a socially
determined position within a community or a social system, such as being a woman, student,
teacher, child, parent, etc. Other people anticipate a status holder to act differently depending on
the circumstance. The father-child relationship is reciprocal and grants each a place in the family
unit. Status always implies a group; position is always relative. Every status comes with a set of
obligations, rights, and benefits.

UNIT 8 LEADERSHIP AND CONTROL

Objectives
At the end of this unit, you will be able to:
 Understand concept and nature of leadership
 Understand difference between leadership and management
 Understand the theories of leadership
 Understand concept and nature of control
 Understand relationship between planning and control
 Understand behavioural implications of control

Introduction
Leadership is often defined as "the process whereby one individual influences other group members
towards the attainment of defined group or organisational goals." Or “Leadership is the process of
influencing and supporting others to work enthusiastically towards achieving objectives” Human
resources are the most valuable resource in any organisation. As a result, human resource capability
should be utilised to the fullest extent possible so that a business can demonstrate its superiority in
all areas. It is determined by the organization's management. By gaining their support, they can get
the best results from those people resources. When a manager takes on the role of true leader,
however, it is feasible to influence their conduct in the appropriate direction. We can use the
example of a cricket team to illustrate this point. Out of the eleven players on the squad, one is
chosen to be the captain, and he is the team's leader. The captain's effectiveness as a leader is
completely dependent on the team's ability to win a cricket match. It is believed that under the
direction of an effective leader, the team will win the match with ease. Effective leadership is at the
heart of every organisational success. The exercise of influence by one person over others is referred
to as leadership. 
Thus, Leadership can be defined as an interpersonal influence aimed at achieving a set of objectives.
The terms interpersonal, influence, and objective are three key components of this definition.
 Interpersonal meaning between people, therefore a leader is in charge of more than one
person or group.
 Influence is the ability to influence people.
 The goal is the destination that one aspires to reach.

8.1 Concept and nature of leadership

The verb "to lead" gave rise to the noun "leader." This also includes the concepts of "advancement,"
"excellence," "standardisation," and "guiding and governing" others' actions. A leader is someone
who is in charge of a group of people. Only when he has the skill and competence to guide and rule
his followers, i.e., when he is ahead of his followers, will he be acknowledged as a leader. The leader
will fail to command respect and obedience from the following unless he is ahead of them. He
should also have a competitive advantage over his peers in terms of professional, technical,
managerial, and other abilities. He should be able to outperform his subordinates or followers based
on his abilities.
The ability of management to make wise judgments and motivate people to perform effectively
might be defined as leadership. It is the process of influencing others' actions in order to achieve a
common purpose. In a nutshell, leadership entails getting things done with the help of others. From
the concept of "born-leader" to "situation-leader" to "effective leader," the concept of leadership
has evolved dramatically. Leadership perspectives, attitudes, and theories have shifted dramatically
in recent years. To meet the problems, business and industry have positioned managers as more of a
leader. The degree of business success is determined by the quality of leadership provided by
managers.
One of the most important aspects of direction is leadership, which is a part of management. As a
manager, you must guide and motivate your subordinates to achieve organisational goals.
Leadership is both an abstract trait in a man and a psychological process by which a leader attempts
to influence followers' behaviour to work willingly and passionately toward predefined goals. As a
result, leadership serves as a motivator for others to complete tasks. Management has two options
for getting information from an organisation's human resources.
 To begin with, by exercising the authority that has been given to it.
 Second, through gaining the public's support.
Some people are born leaders who don't require much in the way of training or development.
However, many managers are not born with exceptional leadership abilities. To learn and
develop leadership qualities, such managers require training and development. Born leaders, on
the other hand, can improve their effectiveness with training. Mahatma Gandhi, JRD Tata, and
Dheerubhai Ambani are examples of born leaders, whereas Bipin Chatoi of KIDS Exports and
Pardhasaradhi of Hindustan Lever are examples of made leaders.

Nature of Leadership
 Rather than being a one-time exercise, it is a constant process of influencing the behaviour
of the followers.

 It is a personal characteristic of character and behaviour that qualifies a person to exert

interpersonal influence.

 For the leadership function, there needs be a group of followers.

 It is the relationship that develops between a leader and his followers (individuals and/or
groups) as a result of their working together to achieve a common objective.

 Leadership encompasses establishing objectives and policies for followers, inspiring them,
and coordinating their efforts to achieve those aims.

 Leadership styles can vary depending on the situation.

  It comprises the ability to persuade and motivate others to work objectively toward
achieving certain objectives.

 It is vital to lead the followers toward common objectives. While providing advice, the leader
expresses his admiration for the followers and emphasises the value of their efforts.

 It is a method by which the leader exerts control over the members of a group.

8.2 Difference between leadership and management

The following is a list of the primary distinctions that exist between management and leadership:

 Leadership is the quality of guiding other people through inspiring and motivating them.
Management refers to the process of overseeing and directing the operations of an
organisation.
 Leadership necessitates that followers have faith in their respective leaders. In contrast
to management, which relies on its managers to maintain control over their
subordinates.
 While management refers to the trait of being in charge, leadership refers to the ability
to influence other people.
 The ability to see far into the future is essential for leadership, but management tends to
focus only on the immediate future.
 In the context of management, rules and procedures are put into action, whereas
principles and guidelines are developed in the context of leadership.
 Leadership requires taking the initiative. On the other hand, management is
characterised by its reactive nature.
 Leadership is the agent of change. On the other side, management provides a stable
environment.

8.3 Importance of leadership

Leadership is a critical management function that contributes in maximising efficiency and achieving
organisational objectives. The following arguments support the significance of leadership in a
business.
1. Initiates action: A leader is someone who starts the work by communicating policies and
plans to subordinates, which is where the real work begins.

2. Motivation: A leader demonstrates that he or she is a motivator in the company's

operations. He inspires his staff through monetary and non-monetary incentives, and as a
result, he receives labour from his subordinates.

3. Providing guidance: A leader must not only monitor but also provide direction to his or her
followers. Guidance in this context refers to teaching subordinates how to do their jobs
properly and efficiently.

4. Creating confidence: Confidence is a crucial aspect that may be achieved by conveying work
efforts to subordinates, clearly describing their roles, and providing them with directions for
achieving the goals. It's also crucial to pay attention to the employees' complaints and
difficulties.
 5. Building morale: Morale refers to an employee's willingness to cooperate in their task, as
well as gaining their confidence and trust. A leader can increase morale by obtaining full
cooperation from his or her subordinates, allowing them to perform to the best of their
ability while working toward a common objective.

6. Builds work environment: Creates a positive work environment- Management is responsible

for getting things done through others. A productive work atmosphere promotes sound and
consistent growth. As a result, a leader should keep human relations in mind. He should
maintain personal contact with employees and listen to and resolve their issues. Employees
should be treated with compassion.

7. Co-ordination: Personal interests and organisational goals must be reconciled in order to

accomplish coordination. This synchronisation is possible through proper and effective
coordination, which should be a leader's primary goal.

8. Basis for Co-operation: Effective leadership improves understanding between subordinates

and management and promotes cooperation between them.

9. Aid to Authority: Using authority alone does not always result in the desired outcomes. By
influencing, encouraging, and initiating action, leadership assists authority.

10. Leadership is Required at All Levels of Management: Effective leadership is required at all
levels of management because without it, no management can accomplish the intended
goals.

8.4 Trait theories of leadership

The Trait Theory: Are Some People Really "Born Leaders"?
The trait model of leadership is used to predict leadership effectiveness and is based on the traits of
numerous successful and failed leaders. The resulting lists of characteristics are then compared to
those of potential leaders in order to determine whether they are likely to succeed or fail. Common
sense tells us that some people have more of something than others "'the right stuff' than others,
and are simply better leaders by nature. And, when you consider some of history's great leaders,
such as Martin Luther King, Jr., Alexander the Great, and Abraham Lincoln, to mention a few, it's
evident that they all share attributes that set them apart from regular people. The question which
arises here is "what is it that makes great leaders so great?” Using the trait approach, researchers
looked for physiological (appearance, height, and weight), demographic (age, education, and
socioeconomic background), personality (self-confidence, and aggression), cognitive (intelligence,
decisiveness, judgement, and knowledge), task-related (achievement drive, initiative, and
persistence), and social (sociability and cooperativity) characteristics.
Scientists have been devoting a lot of time and effort to this subject, promoting the great man
theory. Great leaders, according to this theory, have certain characteristics that set them apart from
the rest of the group. Furthermore, according to the theory, these characteristics are persistent over
time and across various groups. As a result, it appears that all great leaders, regardless of their
historical role, possess these features. Although these ideas seem intuitive, they haven't always been
backed up by study, leading some scientists to believe that leaders and followers don't vary in a clear
and consistent way. Today, however, it is widely accepted that personality traits matter - that is, that
particular personality traits, when combined with other factors, contribute to a leader's success in
the workplace? What exactly are these character traits?

Successful Leaders' Characteristics

According to research, successful leaders exhibit the characteristics listed below.

Trait or Characteristic Description

Drive Ambition; great energy; tenacity; initiative;
desire to succeed

Honesty and Integrity reliable; open; trustworthy

Leadership and Motivation Desire to exert power over others in order to

achieve common aims

Self-Confidence Have faith in your own ability.

Cognitive Ability Intelligence is defined as the ability to integrate

and analyse enormous volumes of data
Business Knowledge Knowledge of the industry, as well as key
technological issues

Creativity Originality

Flexibility Adaptability to the needs of followers and the

demands of the scenario
Emotional Intelligence Emotional Intelligence is a new quality that has
been linked to leadership in recent years (EI). EI
proponents claim that without it, a person can
have excellent training, a sharp analytical mind,
a compelling vision, and an infinite supply of
wonderful ideas yet still fail to be a good
leader. Empathetic leaders, it is assumed, can
sense their followers' needs, listen to what they
say (and don't say), and read their followers'
reactions.

Advantages of Trait Theory

 It's a logically appealing theory.
 It is valid because the theory's foundation and base have been validated by a large body of
research.
 It acts as a benchmark against which an individual's leadership abilities can be measured.It
provides a thorough understanding of the leader's role in the leadership process.
The Trait Theory's Limitations
 When it comes to judging who is considered a ‘good' or ‘successful' leader, there is likely to
be some subjective judgement.
 The list of possible characteristics is usually quite large. There have been over 100 different
qualities discovered in successful leaders in various leadership positions.
 These are only broad generalisations.
 There is also debate on which characteristics are most crucial for a successful leader.
 The concept tries to link physical characteristics like height and weight to leadership
effectiveness. The majority of these factors have to do with circumstances. In a military
leadership role, for example, a minimum weight and height may be required to fulfil the job
efficiently. These are not the requirements for becoming an effective leader in a commercial
setting.
 The theory is extremely complicated.

8.5 Behavioural theories of leadership

The Behaviour Approach: What Do Leaders Do?
Behavioural theories of leadership are so named because they concentrate on the study of a leader's
distinctive behaviours. According to behavioural theorists, a leader's behaviour is the best predictor
of his or her leadership influences, and hence the best predictor of his or her leadership success.
Because behaviours may be conditioned in such a way that one can have a specific response to
specific stimuli, this behaviour-focused method has great marketing potential.
As a result, we've progressed from the idea that leaders are born (Great Man Theory), to the idea
that we can measure your leadership potential (Trait Theory) using psychometrics, and finally to the
idea that anyone can be made a leader (Behavioural Theories) by teaching them the most
appropriate behavioural response for any given situation.

There are two major behavioural studies that are worth mentioning.

1. Ohio State University (1940s)

Ohio State University is a public university in Columbus, Ohio (1940s)
Although leadership studies aiming at defining the appropriate attributes failed to produce decisive
results, a group of Ohio State University researchers compiled a list of 150 assertions from the 1,800
replies they received. The list was created to assess nine key aspects of behavioural leadership. One
of the study's main goals was to uncover common leadership behaviours. The study concluded that
there were two groups of behaviours that were strongly connected after accumulating and analysing
the data. Consideration (People-Oriented Behavioural Leaders) and Initiating Structure were defined
as these (Task Oriented Leaders).

 Task oriented leaders

The task at hand requires leaders to concentrate their actions on the organisational structure and
operating procedures, and they like maintaining control. Task-oriented executives are concerned
with employee motivation, but it is not their primary priority. They will favour actions that are
consistent with:
 Initiating
 Organizing
 Clarifying
 Information Gathering

 People oriented leaders

People-oriented leaders focus their actions on ensuring that the inner needs of their followers are
met. As a result, they will try to motivate their employees by emphasising the personal relationship.
People-oriented leaders are still focused on the work and the outcomes; they just do so in a different
way. Leaders that place a strong emphasis on people will exhibit the following traits:
 Encouraging Observing
 Listening
 Coaching, and
 Mentoring are all skills that may be learned.

2. University of Michigan (1950s)

University of Michigan is located in Ann Arbor, Michigan (1950s)
The leadership research at the University of Michigan, led by renowned organisational
psychologist Dr. Rensis Likert, discovered three qualities of effective leadership, two of which
had already been observed in studies at Ohio State University. The findings revealed that task
and relationship-oriented behaviours aren't particularly important in the field of organisational
psychology. The third observation, on the other hand, provided a new concept: participative
leadership.

8.6 Situational theories of leadership

The situational leadership theory refers to leaders who use various leadership styles depending on
the situation and the development level of their team members. It's a good technique to lead
because it adjusts to the needs of the team and strikes a good balance for the entire organisation.
According to the situational theory of leadership, there is no one-size-fits-all leadership style.
Instead, it is determined by the style of leadership and techniques that are most appropriate for the
situation. According to this idea, the most effective leaders are those who are able to adjust their
leadership style to the situation and consider cues such as the work at hand, the character of the
group, and other elements that may help them complete the task.
After its creators, Dr. Paul Hersey, author of "The Situational Leader," and Kenneth Blanchard,
author of "One-Minute Manager," situational leadership theory is often referred to as the Hersey-
Blanchard Situational Leadership Theory.
The situational leadership model developed by Paul Hersey and Ken Blanchard is the most well-
known in the fields of psychology and human resources. Two basic levels of leadership behaviour
were developed by these two experts:
Leadership Styles
Hersey and Blanchard suggested that there exist four main leadership styles:
 Telling (S1): The leader informs people what to do and how to do it in this leadership style.
 Selling (S2) is a more back-and-forth style between leaders and followers. To encourage
group members to buy into the process, leaders must "sell" their ideas and message.
 Participating (S3): In this technique, the leader gives less direction and encourages members
of the group to contribute more ideas and make decisions.
 Delegating (S4): This leadership style is defined by a less involved, hands-off approach. The
majority of decisions are made by group members, and they bear the majority of the blame
for what occurs

Levels of Maturity
The maturity level (i.e., the level of knowledge and skill) of the person or group determines the
appropriate leadership style.
According to Hersey and Blanchard's theory, there are four levels of maturity:

 M1: The members of the group lack the necessary knowledge, abilities, and motivation to
execute the assignment.
 M2: Members of the group are eager and energetic, but they lack the necessary skills.
 M3: Group members possess the necessary skills and abilities to execute the work, but they
refuse to accept responsibility.
 M4: The members of the group are highly skilled and eager to accomplish the target.

Matching Levels and Styles

Maturity levels and leadership styles can be matched. According to the Hersey-Blanchard model, the
following leadership styles are best for different maturity levels:

Low Maturity (M1)—Telling (S1)

Medium Maturity (M2)—Selling (S2)
Medium Maturity (M3)—Participating (S3)
High Maturity (M4)—Delegating (S4)

How Does It Work?

When followers lack the responsibility or knowledge to work on their own, a more "telling" style
may be required at the start of a project. However, when subordinates gain experience and
understanding, the leader may wish to take a more delegating approach.
This situational leadership paradigm emphasises flexibility, allowing leaders to adjust to the
requirements of their followers and the demands of the situation.
The situational approach to leadership also avoids the pitfalls of the single-style approach by
recognising that there are many different ways to approach a problem and that leaders must be able
to assess a situation as well as the maturity levels of subordinates in order to determine which
approach will be the most effective at any given time.
As a result, situational theories pay more attention to the complexities of dynamic social
circumstances and the many individuals operating in many roles who will ultimately influence the
outcome.

Situational Leadership II

Kenneth Blanchard created the Situational Leadership II (or SLII) model, which improves on
Blanchard and Hersey's initial theory. Effective leaders must base their conduct on the
developmental level of group members for certain tasks, according to the revised version of the
theory.

Competence and Commitment

The level of competence and commitment of each individual determines their developmental level.
These levels are as follows:

 Beginner with zeal (D1): high commitment, low competence.

 Disillusioned learner (D2): Some competency, but a lack of commitment due to setbacks.
 Capable but cautious performer (D3): Competence is increasing, but commitment levels
vary.
 Self-reliant achiever (D4): High levels of competence and commitment.
SLII Leadership Styles
According to SLII, successful leadership requires two key behaviours: supporting and directing.
Giving precise directions and instructions, as well as seeking to influence the conduct of group
members, are examples of directing behaviours. Actions such as encouraging subordinates,
listening, and providing appreciation and feedback are examples of supportive behaviours.

According to the theory, there are four primary leadership styles:

 Directing (S1): A high percentage of directing activities and a low percentage of

supporting behaviours.
 Coaching (S2): Exhibits a high level of guiding and supporting behaviours.
 Supporting (S3): This type of behaviour has a low level of directing behaviour and a high
level of supporting activity.
  Delegating (S4): Low on both directing and supporting behaviours.

The key premise of the SLII theory is that none of these four leadership styles is superior to the
others. Rather, an excellent leader will tailor his or her actions to each subordinate's developmental
skill for the work at hand.

Factors to Consider
According to experts, there are four crucial contextual aspects that leaders must consider while
assessing the issue.

Consider the Relationship

The relationship between the leaders and the members of the group must be considered by the
leaders. Social and interpersonal aspects can influence which strategy is most effective.
A group lacking in efficiency and productivity, for example, can benefit from a leadership style that
emphasises order, regulations, and clearly defined positions. A productive group of highly trained
workers, on the other hand, might benefit from a more democratic approach that permits members
to work freely while yet having a say in organisational choices.

Consider the Task

The task itself must be considered by the leader. Tasks might be simple or complex, but the leader
must have a clear understanding of what the assignment includes in order to judge whether it was
completed properly and competently.

Consider the Authority Level

The leader's level of influence over the members of the group should also be examined. Some
leaders have the authority to fire, employ, reward, or chastise subordinates simply because of their
position. Other leaders develop influence through cultivating connections with employees,
frequently by earning their respect, providing assistance, and assisting them in feeling included in
decision-making.

Take into account your maturity level.

Leaders must assess the maturity level of each individual group member, as suggested by the
Hersey-Blanchard model. The maturity level is a measurement of a person's capacity to finish a task
as well as their willingness to do so. It's a recipe for disaster to assign a job to a member who is
willing but not capable.
Knowing each employee's maturity level allows the leader to determine the optimal leadership
technique for assisting employees in achieving their objectives.

8.7 Transactional theories of leadership

Transactional leadership, often known as management leadership, is a leadership style in which
leaders use incentives and penalties to motivate their subordinates to perform well. The exchange or
transaction underpins the transactional executive leadership concept. The leader rewards
employees who complete their jobs to the stipulated levels and punishes those who do not meet
those standards. This connection between a leader and his or her subordinates is founded on
notions that hold that people are not self-motivated and require structure, teaching, and supervision
to do their tasks. Employees will also accomplish their jobs as the transactional leader wants them to
in exchange for the leader giving something the workers desire, such as cash, according to the
notion.
The following are the three methods of transactional leadership:
 Contingency. Transactional leadership employs reinforcement theory and extrinsic
motivation in the form of a reward, incentive, and punishment system. Employees receive
contingent prizes and benefits if they meet their target.
 Exceptional active management Transactional leaders, by default, rely on active monitoring
to foresee concerns and respond to them.
 Exceptional passive management By default, transactional leaders keep out of the way of
the team and only interfere when employee performance standards are not fulfilled.

8.8 Transformational leadership

Have you ever been in a group where someone took command by communicating a clear vision of
the group's goals, a strong love for the job, and the capacity to refresh and revitalise the rest of the
group? This someone may be a transformational leader. Transformational leadership is a kind of
leadership that may motivate others to make beneficial changes. Transformational leaders are often
vivacious, enthusiastic, and passionate. These leaders are not only interested and active in the
process, but they are also committed to assisting each member of the group in succeeding.
Transformational leadership's key aims are to inspire growth, foster loyalty, and build confidence in
group members. The features of transformative leadership and their consequences on groups are
discussed in this article.
Transformational Leader Characteristics
 Capable of inspiring others to communicate and participate
 Active listening abilities
 Adaptability
 Authenticity and sincerity
 Creativity
 Emotionally intelligent and inspiring
 Open-mindedness
8.9 Concept of control
One of the most important characteristics of a manager is the ability to demand the respect of his
team. This gives him the ability to lead and control their behaviours. In fact, one of his most
significant tasks is regulating. Let us examine the significance and meaning of the governing function.
To get the desired outcomes from subordinates, a manager must maintain effective control over
their operations. In other words, the controlling role ensures that operations in an organisation are
carried out in accordance with the plans. Controlling also guarantees that an organization's
resources are utilised effectively and efficiently to meet defined objectives.
 Control is a goal-driven function.
 It is a major responsibility of any management.
 Controlling a manager's role is a widespread function.
Managers at all levels of management - top, middle, and bottom - must execute controlling functions
in order to maintain control over activity in their regions. As a result, control is as crucial in an
educational institution, military, hospital, or club as it is in any economic organisation. As a result,
the controlling role should not be seen as the final function of management. It is the function that
returns the management cycle to the planning function. Thus, the controlling function serves as a
tool for determining how real performance deviates from standards, as well as determining the
source of deviations and attempts to take remedial steps based on the same. This technique aids in
the formation of future plans in light of the difficulties recognised, resulting in better planning in the
future. So, according to the definition of controlling, it not only completes the management process
but also enhances planning for the following cycle.
8.10 Nature of control
The nature of control is that it is a management function based on planning. A fundamental goal-
oriented duty of management in an organisation is the scope of control.
In an organisation, control is a major goal-oriented function of management.
The following are the nature or features of controlling:
 Control is a Management Function: - Actually, control is a follow-up work to other
management duties that managers conduct in order to control the activities committed to
them in the company.
 The Plan serves as the foundation for control: - Control is intended to measure actual
performance versus specified organisational criteria. Plans act as the ideal performance
benchmarks. The plan directs the organization's direction, while control guarantees that the
organization's selected course of action is followed.
 Control is an ever-changing process: - This involves ongoing evaluation of performance
standards and the results of remedial action, which may need changes in other management
activities.
 Control is guided by information: - Control is based on data concerning real performance.
The provision of timely and accurate input is critical for successful control action. Sound
control systems necessitate an effective reporting system. This necessitates continual
operation monitoring and assessment.
 Control is defined by action: - Control is demonstrated only when corrective action is done
based on reactive information. When there is a divergence, it simply changes the
performance of established parameters. A good control system is one that takes action in a
timely manner, wasting as little time and energy as possible.
 Control is a Continuous Activity: - It is a continuous process rather than a one-step activity. It
entails the ongoing revision and examination of standards as a result of variations between
actual and intended performance.
 Control is achieved by delegation: - An executive can only take remedial action if he is given
the required power. A person has the right to exercise control over the activities for which
he is personally responsible. Furthermore, when authority is assigned, control is required
since the delegate is still liable for the obligation. Control standards aid in extending the
period of management.
 Control is aiming for the future: - Control entails comparing the actual to the norms. As a
result, remedial action is intended to enhance future performance.
 Management's universal function is control: Control is a fundamental or key function of
management. No manager can function without the ability to control the performance of
subordinates. Following the implementation of a plan, follow-up steps are required to
monitor progress, identify shortcomings, and take remedial action.
  Positive Control: - The act of control is good. It is to make things happen, i.e. to achieve the
aim, or to obstruct by organised activity. Control should never be interpreted negatively.

8.11 Relationship between planning and control
The following is an explanation of the link between planning and control:
 The Planning Process Begins Controlling: When objectives or targets are specified during
planning, a control procedure is required to attain these goals. So planning comes before
control.
 Controlling Sustaining Planning: Controlling determines the direction of planning. Controlling
highlights, the areas that require planning.
 Controlling Provides Information for Planning: Controlling compares actual performance to
the standards specified and tracks any discrepancies. The information gathered for exerting
control is also useful for planning.
 Planning and controlling are inextricably linked: The first role of management is planning.
Other functions, such as organising, staffing, directing, and so on, are arranged to carry out
plans. Control records actual performance and compares it to established criteria. When
performance falls short of the stated standards, deviations are calculated. Corrective steps
are implemented to enhance future performance. The first function is planning, and the final
is control. Both are depending on one another.
 Forward-thinking planning and control: Planning and control are concerned with the
business's future actions. Planning is always for the future, and control is likewise. Nobody
can change the past; only the future can be changed. Planning and controlling are focused
with achieving corporate objectives. Their joint efforts are aimed at achieving maximum
production at the lowest possible cost. To achieve organisational goals, both systematic
planning and regulated controls are required.

8.12 Need and significance of control

Control is recognised as a critical management role. As a result, it is something that every manager
must do in order to exert control over his employees. Proper controlling measures are frequently
found to be beneficial in boosting the efficacy of other management activities.
Let us look at some of the facts that demonstrate the significance of controlling in an organisation.
 Achieving organisational goals: Controlling is conducted with the goal of achieving
organisational goals. Control identifies any type of deviance and takes corrective action as
needed. This helps to close the gap between expected and actual performance, allowing the
organisation to meet its goals.
 Coping with Changes: An organisation must deal with various changes in the environment,
which might include the introduction of new goods and technology, changes in government
rules, or changes in rival strategy.
 Efficient use of resources: Controlling enables the management to reduce resource waste
and ensure optimal utilisation of available resources, resulting in successful organisational
performance.
 Determining the accuracy of standards: Managers usually evaluate the work done to a set of
specified standards created for the task and assess whether the set of standards is effective
or whether there is room for improvement in the standards, which will lead to a more
accurate estimate of process efficiency.
  Helps in decision making: Controlling assists managers in discovering the gap between their
thoughts and their actual implementation. It leads to improved decision making and
enhances the organization's overall performance.
 Motivates employees: Employees at an organisation are also aware that their performance is
evaluated using a set of criteria. Employees become more motivated to work for the
organisation when their performance is evaluated on a regular and systematic basis, and
when they are appropriately rewarded in the form of a bonus, increment, or promotion.
 Maintains discipline and order: Controlling gives order and discipline to the organization's
daily activities. Employees are also obligated by the regulations, which helps to decrease
unprofessional behaviour in the workplace.
 Improves coordination: Controlling gives a consistent direction to all of the organization's
operations and also integrates employee actions with organisational goals, assuring peak
performance.

8.13 Behavioural implications of control
Human relations are deteriorating in the organisation because people oppose authority for a
variety of reasons.
Suppressing initiative and originality; this results in underutilization of human potential as well as
low motivation and morale. Instilling dread in subordinates as a result of the implementation of
fines, penalties, and other sanctions for noncompliance with norms. This phenomenon causes
people to become internally angry and irritated, and it promotes the formation of powerful
informal groupings. People perform at a minimum level as a result of negative controls. People
only perform the bare minimum to meet control requirements and rarely attempt to exceed
them. The control system should be as fair and relevant as possible, and all personnel should be
openly communicated with. Employees will be more willing to accept control if they are involved
in the design of the control system and the implementation process. Though control should try
to meet the requirements of the organization's members, it is frequently misinterpreted. This
might be due to the negative genuine impact of control on them or to a misperception of the
impact of control.
Managers must be aware of many behavioural implications in the control process and its
execution. Although an effective control system should help to motivate employees, it can also
have a detrimental impact on staff morale and performance. As a result, while building the
control system, keep in mind that practically everyone in the company not only dislikes the
thought of being controlled, but also dislikes being assessed. It indicates that the results of the
control may differ from what people exercising control expected.
Controls can have an impact on the creation of incorrect and erroneous data. For example, if top
management often cuts budget proposals while assessing them (a control action), lower
management may overestimate the cost of resources required when proposing a new budget or
a new project. Similarly, managers may establish goals that are lower than what is achievable in
order to appear more productive during performance appraisals.
Employees may dislike controls if they have no influence over the issue. For example, if a
professor's performance is evaluated based on the number of books and research articles
published. However, due to hefty teaching loads and extensive committee work, he does not
have the time to do so. This might lead to frustration, which can be harmful to the overall
control system. Likewise, the manager will feel quite upset. If his department's revenues are
used to evaluate his performance. However, he lacks the ability and control to make practical
adjustments such as recruiting and firing employees. To achieve balance among all influencing
and interconnected factors, the control system must synchronise. The standards should be
complementary rather than contradictory. For example, a control system that prioritises higher
sales while reducing advertising spend. The marketing manager may find this conflicting and
consequently annoying.
8.14 Resistance to control
How to Combat Control Resistance
The following steps can be taken to overcome resistance to control:
1. Describe to employees why controls are necessary:
Workers should be aware that controls serve as both a method of achieving organisational goals and
a means of meeting individual needs. If employees meet performance requirements, they will
receive awards, which are always thought of as need-fulfilling motivators.
2. A shift in employees' attitudes:
Workers' attitudes about their workplace and bosses can change once they realise that exercising
control is a constructive activity rather than a negative one. The proper aim should be the centre of
control. The right emphasis on material, financial, and human resources can transform employees'
unfavourable attitudes toward controls into favourable ones.
3. Achieving realistic control: Organizational objectives are impacted by inadequate or excessive
controls (under-control and over-control). Over-control limits the freedom to perform better,
whereas under-control provides workers an overwhelming amount of autonomy. Therefore,
managers must implement practical controls that enhance employee performance.
4. Reasonable performance requirements: It is best to avoid setting overly high or low performance
goals that are either difficult to accomplish or both. Realistic standards should inspire employees to
deliver better work.
5. Control process reevaluation: Control procedures should be reviewed periodically. Alternate
control systems prioritise behaviour improvement over deviations if controls ever appear to be
ineffective.
6. Attention should be directed more toward the results and outputs of activities rather than the
process by which they are carried out. Instead of focusing on deviations, they ought to emphasise
behaviour improvement.
7. Flexible controls: Employees may not always comply with controls. In addition to causing
performance divergence, flawed standards can also do so. Standards ought to be flexible.
8. Employee involvement: Employees who are involved in the control system design have a better
awareness of the standards and are able to evaluate their own performance. The ideal control is
self-control.
9. Rewards should be linked to controls: Instead of punishing employees who report bad deviations,
management should honour those who report appropriate performance. This will encourage other
workers to exhibit the same behaviour and reinforce their own actions. rather than threats and
punishments, use incentives and prizes.
10. Area of control: Despite the best efforts of the personnel, there may still be some performance
deviation. A variety of variances should be permitted rather than strict adherence to standards being
demanded. Managers, for example, might overlook deviations of 5%. The nature of the product
determines the proportion of variance. Costly goods (like diamonds, for example) will have a very
low range of control deviation.
8.15 Management by exception
 It is a process in which only large deviations from a budget or plan are brought to management's
notice. The aim is that management's attention will be focused solely on areas that require
action. When managers are alerted of a deviation, they may focus on one single issue while staff
handles everything else. If nothing is mentioned, management can presume that everything is
proceeding as planned. This approach is comparable to vital sign monitoring systems seen in
hospital intensive care units. When one of the patient's vital signs falls outside the range pre-
programmed into the equipment, an alert ring, and personnel rushes to the patient's aid. If the
machine is silent, it is considered that the patient is stable and will just require routine
professional attention. Trying to control everything may end up in controlling nothing”.
Managers cannot manage every aspect of the organisation. This is neither desired nor feasible
given the limits of time, money, and resources.
If actual performance matches projected performance, upper management does not need to be
notified. Even if the deviation is not large (i.e., it is within the range of control), upper
management may not be informed. However, if variations are severe (outside the allowable
range of errors), they should be notified to management. These variations might represent
unusual positive or terrible conditions. According to the management by exception' idea,
managers should focus on large deviations rather than each and every organisational action.
"The more managers focus their control efforts on large exceptions, the more efficient the
results of their control will be."
The management by exception' philosophy provides the following advantages:
 It saves time, effort, and money because supervisors only deal with extreme deviations.
 It promotes the growth of lower-level managers by teaching them how to cope with
easy and routine challenges.
 It contributes to the best possible achievement of organisational goals by classifying
deviations as substantial (those that have a significant impact on organisational
objectives) or unimportant (those that do not require top managerial attention).
 It results in optimal resource use since resources are concentrated in areas that require
managerial attention.
Summary
The ability of management to make wise judgments and motivate people to perform effectively
might be defined as leadership. It is the process of influencing others' actions in order to achieve a
common purpose. In a nutshell, leadership entails getting things done with the help of others. From
the concept of "born-leader" to "situation-leader" to "effective leader," the concept of leadership
has evolved dramatically. Leadership perspectives, attitudes, and theories have shifted dramatically
in recent years. To meet the problems, business and industry have positioned managers as more of a
leader. The degree of business success is determined by the quality of leadership provided by
managers. One of the most important characteristics of a manager is the ability to demand the
respect of his team. This gives him the ability to lead and control their behaviours. In fact, one of his
most significant tasks is regulating. Let us examine the significance and meaning of the governing
function. To get the desired outcomes from subordinates, a manager must maintain effective control
over their operations. In other words, the controlling role ensures that operations in an organisation
are carried out in accordance with the plans

Unit 9 MORALE AND JOB SATISFACTION

Objectives
At the end of this unit, you will be able to:
  Understand concept and nature of morale
 Understand factors influencing morale
 Understand concept and importance of job satisfaction
 Understand the various consequences of job dissatisfaction
 Understand the various determinants of job satisfaction

Introduction
Employee morale is a term used to describe how employees feel about themselves and their work
environment. Employees with good morale are said to be content and have a positive attitude at
work, whereas those with poor morale dislike their workplace. The environment of the workplace,
management's support, and job security are a few factors that might affect an employee's morale.
For instance, Jane will be more likely to feel emotionally at ease and less under pressure if she meets
with her boss and is told that she is on target with her work. This is because she has received a vote
of confidence from management. Job satisfaction is a key factor in employee productivity since it
demonstrates the level of pleasure that employees have at work. An emphasis on worker happiness
can encourage people to maximise their potential, creative skills, and other assets that provide your
company a competitive edge. An employee may be questioned about how they feel about the task
they are doing and how they feel about their environment during an annual performance review.
The employee is given the opportunity to directly respond to the question of whether the position
aligns with their career objectives in this question.

9.1 Concept of morale

Employee morale can be defined as an employee's disposition, level of contentment, and overall
outlook during their time spent working for an organisation or a company. If your company has a
bad culture, then there will be negative impacts in the form of low productivity, low employee
happiness, and other such things. To begin, it can most surely result in a bigger loss of employees,
which is called attrition.
Do you realise that the way you feel as a group contributes significantly to the success of the
enterprise? This is due to the fact that low morale is the mother of such problems as low
productivity, high absenteeism, low employee satisfaction, and so on. In a nutshell, we might say
that morale is an indicator of how content a person is with their job inside a company, but that
would be oversimplifying things. This will be reflected in how they feel about their work, the policies
of the organisation, management, and how they treat their superiors and subordinates.
A combination of an employee's feelings, expectations, and attitude, all of which contribute to a
general sense of contentment, is what we mean when we talk about employee morale. A person's
mental condition and level of excitement influence their desire to work, which in turn influences
both the goals of the organisation and those of the individual.

9.2 Nature of morale

 Psychological Concept: It is considered a psychological notion since it defines the mental
state of an employee in relation to the organisation, which makes it an important
component of employee satisfaction.
  Intangible: morale is not something that can be touched or seen; rather, it is an intangible
quality. This indicates that morale cannot be seen or touched in any way; rather, it can only
be felt. Because of this, it is difficult to get an accurate measurement.

 Contagious: Just like a virus, morale is also contagious. Consider the following scenario: an
employee is dissatisfied with the policies of the firm and continues to complain about it to
other employees. In this scenario, the individual may be fired. Then, after a certain amount
of time has passed, his coworkers will eventually begin thinking in that manner.

 Phenomenon of the Group: Morale is a Conglomeration of Multiple Feelings, Attitudes,

Expectations, Beliefs, and Outlooks Morale is a phenomenon that occurs in groups.

 Long-term idea: Developing and preserving the morale of one's workforce is not something
that can be accomplished in a single day. It is a way of thinking that takes a long time and
involves an ongoing process.

 Morale is the byproduct of motivation; it is the aftereffect of motivation and the interactions
within a group. It is a conceptual process that, once initiated, will quickly expand throughout
the entirety of the organisation. In addition to this, it fosters a mood, which ultimately leads
to a shared attitude.

9.3 Factors influencing morale

There are many different factors that can have an effect on the morale of an organization's workers.
In this section, we are going to talk about several essential aspects that influence the morale of
employees:
 Organization: When the goals that are set by the top executives of the firm are attainable
and acceptable, the employees create a positive attitude about the job and also about the
organisation as a whole. The workers have complete awareness of their jobs and
responsibilities when the organisational structure is clearly defined, which is another benefit
of having clear organisational definition. Additionally, this inspires people to work with self-
assurance.

 Leadership: A strong leader has the ability to shape the mental processes of those under his
command. It has a highly significant impact on employee morale when they are treated
fairly, when they are rewarded and recognised fairly for their good work, and when they are
recognised for their outstanding work. When a CEO is sympathetic, inspirational, and
compassionate toward their employees, in contrast to a leader who acts like a tyrant,
workers report feeling more connected to the company.

 Colleagues: Colleagues have the power to turn any workplace into either heaven or hell.
Imagine a person who never says anything positive about the organisation and only
complains about it. These people make everyone's working environment into a living hell.

 The nature of the work: Boring, repetitive, and mundane work is something that no one
enjoys doing. It not only stifles their creative potential but also stunts their personal
development. When a job is intriguing and tough at the same time, many people are
motivated to work more. Additionally, an acknowledgement from a superior for successfully
completing a difficult work is a surefire way to boost an individual's morale.
  Working Environment:The employees' thoughts are shaped in significant ways by the
environments in which they work, and one of these ways is the way in which they think
about their jobs. Employee morale can be boosted by providing a working environment that
is safe, clean, modern, hygienic, and comfortable.

 Employees: The way in which an employee sees himself in relation to the organisation is
another important factor that has a significant impact on morale.

9.4 Morale and productivity

The level of contentment and convenience that an employee feels while working is referred to as
their "morale." In the context of organisations, the term "morale" is very common. In general,
though, it is used to allude to esprit de corps, which is a feeling of enthusiasm, fervour, and
confidence in people or organisations that they will be able to successfully complete the
responsibilities that have been given to them. In most cases, a strong morale within an organisation
is directly correlated to a high level of productivity inside that firm.
The extent to which an individual member of a team contributes to the achievement of the group's
overall goals is directly influenced by that member's morale. Therefore, morale is not only generic
but also distinctive to each individual. Sadly, boosting morale is not a mechanical problem that can
be solved by either rewards or punishments. This makes it difficult to find a workable solution. The
most effective strategy for dealing with it is to proactively carry out a large number of interventions
connected to employees, all of which, when combined, will have a favourable effect on morale.
Another definition of morale describes it as the enthusiasm and self-assurance with which a person
approaches his work. It is an intricate psychological attribute that cannot be imposed on another
person, is hard to assess, and is simple to lose. The extent to which an individual's comprehensive
requirements are satisfied plays a direct role in determining their level of morale.
It is generally accepted that strong morale, high productivity, and high quality as well as creative
work go hand in hand with one another. It is essential to have an understanding of the effects that
high and low morale have on an organisation because morale is reflected in the attitudes of
personnel. The impact that the level of morale has on the productivity of employees is one of the
consequences that is the most difficult to anticipate. At the very least, one of the components that
goes into determining a group's level of productivity is the collective mindset and level of dedication
of the members of that organisation. It was once believed that a high level of morale would result in
high levels of productivity. The results of recent studies indicate that this association may not be as
straightforward as previously thought. According to the findings of a number of studies, the group
with the best morale does not necessarily have to be the group with the highest output. Productivity
is the outcome of a series of intricate factors, just like morale is made up of a wide variety of
different components. It is reasonable to anticipate that a group's level of productivity will be high
when the group is convinced that higher levels of output will result in the group obtaining the things
that it desires the most. It is also plausible to suppose that if the group's satisfactions in the working
environment are high and if high productivity will help the group to achieve the things that it wants
the most, then the group's productivity may be high.
Even if strong morale could not be the only reason for great productivity, a group that consistently
does a lot of work almost always has an unreasonably high level of morale in comparison to the rest
of the firm. When operations are effective, it is nearly inevitable that morale will improve because
individuals will be able to tie their own endeavours and goals to the success of the business as a
whole. "An organisation that is successful at building morale has a tendency to utilise fully the skill,
initiative, judgement, and training of its members, and through such utilisation is successful in
building up these and other qualities in everyone, so that the capabilities of all are constantly
expanding, and the organisation is thus able to succeed and grow."
9.5 Building high morale
 Encourage Participation: Employees' engagement in issues linked to policy creation will
boost their morale and inspire them to work toward organisational objectives. Making
choices jointly between bosses and subordinates, who implement such decisions, will
encourage restraint inside the organisation.
 Workplace Environment: If the workplace is expanded and improved with more demanding
job responsibilities, it will boost employee morale and motivate them to work harder to
achieve the organization's goals.
 Communication: The flow of doubts and clarifications from the bottom to the top in an
organization's communication system helps people comprehend one another's points of
view, raises morale, and makes it easier to put decisions into action.
 Integration of Individual Goals with Organizational Goals: Individual goals are viewed as a
way to achieve organisational goals, and organisational goals are seen as a way to achieve
individual goals by those who integrate individual goals with organisational goals. The
morale of the workforce is raised by this goal integration. Conflicts ought to be kept to a
minimum. This reduces costs associated with contracts, grievance resolution, consulting,
etc., and encourages people to act responsibly and cooperatively.

 Sound Organisation Structure: A sound organisational structure with clearly defined duties,
authority-responsibility relationships, spans of control, and leadership styles boosts
employee morale and productivity. High morale is typically encouraged by flat structures
because vertical channels lengthen the links for information flow. Less levels are designed
into the organisational structure, making people easier to approach.
 Employee-Oriented Approach: Managers should place greater emphasis on relationships
with employees than on relationships with tasks. Employees should be given the opportunity
to reach their full potential. The completion of tasks is influenced by employee happiness.
Instead of being viewed as manufacturing inputs, people should be recognised as human
beings. They should be aware of how they affect one another's and the organization's
production. No organisation, division, or person can function independently. When people
work together, they create synergy and raise each other's spirits.
 Job Design: To maximise job satisfaction and need satisfaction, jobs should be designed to
allow employees to work to the best of their abilities. Jobs that are challenging and cutting
edge boost the morale of employees with strong "growth-needs." Jobs should be created
such that employees like performing them. It should make the work exciting and demanding
while overcoming boredom and exhaustion. People are more motivated to contribute to
organisational productivity if they enjoy what they are doing.
 Development Facilities: Recreational, medical, educational, counselling, sports, and other
welfare facilities help employees grow and develop and boost their morale so they can
positively impact the productivity of the organisation.

9.6 Concept of job satisfaction

As its name suggests, job satisfaction refers to the state of mind in which an employee experiences
feelings of contentment or a sense of success as a direct result of his or her work. The process of
appraisal is what ultimately leads to an individual achieving their job values or satisfying their
fundamental requirements. It is helpful in determining the degree to which a person enjoys or
detests the work that they now hold. When an employee realises that their job helps them achieve
their wants and ideals, either directly (by allowing them to accomplish it) or indirectly (by providing
opportunities for them to do so), they develop a good attitude toward the job and the organisation
as a whole (by the package they get). In a nutshell, it is a representation of the disparity that exists
between the expectations of the employee and the experience that the employee obtains from the
job. The greater the disparity, the greater the degree of dissatisfaction.

9.7 Importance of job satisfaction

 Reduced Turnover
One of the KR department's largest expenses can be turnover. Retaining employees
improves the workplace, makes it simpler to find qualified candidates, and helps you save
money. Low job contentment makes someone more likely to be actively looking for another
employment, whereas job happiness makes someone less likely to be job seeking.

 Increased productivity
Employees that express high job satisfaction typically produce more work, regardless of their
position title or pay grade. A person may concentrate and give attention to their tasks when
they are content with their job. They appear to take ownership of and accountability for
reaching the corporate objective that actually makes them happy. It makes sense for other
team members to try to boost productivity to the required level when one member of the
team exhibits high levels of it.

 Improved client satisfaction

Keeping staff members happy and safe may improve revenue, cut costs, and strengthen the
bottom line. Selling goods or providing services to clients are two ways to make money. If
the staff are happy in their jobs, they will be able to provide superior customer service, and
we all know that customer loyalty and retention depend on how well the employees treat
their clients. If customers’ loyalty is increased, automatically it will lead to a rise in profit.

 Employee Absenteeism
While a dissatisfied employee is more likely to take "mental health" days—days off taken for
reasons other than illness or personal affairs—than a satisfied employee, the latter is more
likely to miss work due to illness or personal matters. People who are content with their jobs
may be more inclined to show up to work when they are unwell; on the other hand, those
who are dissatisfied with their jobs are more likely to call in sick even if they feel well
enough to work.

 Helps to increase revenues

Until and unless people have a sense of commitment and loyalty to their organisation, no
amount of motivation or training would be of any use. Employees waste half their time
arguing or working out problems with their coworkers. Employees that are satisfied with
their jobs are those who are content to assist coworkers and support the company even in
times of need. They put their organisation first and everything else second. They are not only
there for the money; they also work there because they care about the company and
support its mission. They believe in working productively so that their efforts will eventually
help the organisation, as opposed to just sitting around and engaging in idle chatter.
  Employee satisfaction tends to handle pressure
Employees that are satisfied with their professions are eager to take part in training
programmes and learn new software and technologies that will eventually benefit their
professional careers. Employees that are happy with their jobs are willing to take on
obstacles and yet perform well. For workers to be content and perform to the best of their
abilities, employee satisfaction is crucial. Employees who are happy with their jobs are the
most loyal to their employers and will stick with them no matter what. They labour
voluntarily because they aspire to elevate their organisation rather than because of any
sense of obligation.

9.8 Consequences of job dissatisfaction

The effects of job dissatisfaction that one encounters when experiencing work dissatisfaction are
briefly listed below.
1. Mood swings:
Mood fluctuations are frequent in those who are unhappy with their jobs. People frequently find
nothing to their taste when things at work are not going well. Since we must work to survive, it
becomes a significant aspect of our lives. Therefore, anything that goes wrong at work causes us
great anxiety. Perhaps we wouldn't discuss it with anybody else, but our displeasure starts to come
out in our behaviour. We are prone to be unhappy in our domain as well if we are not satisfied with
our jobs.

2. Having a bad attitude

Another consequence of job unhappiness is discontentment. You can't help but complain nonstop
about your job when everything about it makes you unhappy. It is impossible to expect to be
content with anything else while things at work are not going well. You'll begin acting impolitely
toward your family. You might even begin smoking and drinking in the hope that it will make your
discomfort go away. The worst thing is that your personality may change as a result, which may
negatively impact your family and children.

3. Changing into a new person:

The most damaging consequence of job discontent is how it will alter your personality. The bad news
is that it will completely drain your delight. Imagine that you go to work expecting to have a fantastic
day, but due to a series of unfortunate events, you wind up having the worst day ever.
If you experience a lousy job too frequently, things start to get unpleasant. Nothing would be
enough to stop you from feeling horrible if you are a victim of job discontent because a lot of what
happens later in the day depends on how your day at work went. You will eventually start to develop
pessimistic opinions about your job and life in general.

4. Having an uneasy feeling:

Being unhappy at work will immediately make you feel out of place. One of the worst feelings is to
watch everyone at work comfortable in their positions but you. Some people simply aren't adaptable
enough to modify their working habits merely because they conflict with how the business operates.
And you wouldn't want something to go according to plan for your coworkers but not for you. It's
not your fault that you're different, and it's also difficult to keep up with all of your employer's
demands. Additionally, some people find it more difficult to adjust than others.

5. Being helpless
Knowing something is wrong but being powerless to take action is the worst thing that can possibly
take place. There is nothing more pitiful than for someone to be unable to solve an issue. Job
discontent is just like this. Most of the time, you are unable to pinpoint the source of your
unhappiness; so, you are forced to keep reporting to work as things get worse. Until you come up
with a solution to your job discontent, there isn't much you can do.
These days, job discontent at work is rather frequent and only becomes worse over time. However,
with perseverance, preparation, and the love of all your loved ones, you can overcome issues
associated to job discontent.
9.9 Determinants of job satisfaction
Job satisfaction is a complex, intangible concept. Employee work satisfaction is influenced by a
variety of things. There are two groups that they fall under. They are both organisational and
individual factors. Below is a discussion of them:
A - Organizational Determinants:
 The majority of employees' time is spent in workplaces. As a result, a variety of
organisational elements affect employees' job satisfaction. By arranging and managing the
organisational aspects, organisations can improve employee happiness. Learn about the
factors that affect job satisfaction inside a company.

 Wages: The compensation a worker expects from a job is referred to as a wage. It serves as a
tool for meeting needs. Everyone anticipates receiving a prize on par. The pay should be
equitable, fair, and reasonable. Job satisfaction results from feeling that rewards are just and
equitable.

 Work Environment: The work environment has a big impact on how happy you are at work.
Jobs requiring intelligence, abilities, skills, challenges, and the potential for more flexibility
make the employee happy at work. Job discontent is brought on by feelings of boredom, a
lack of variation in the tasks, irritation, and failure.

 Working Conditions: Motivating employees requires good working conditions. They offer a
sense of security, warmth, and inspiration. Workplace hazards make it seem as though
health is in risk.

 Job Content: The term "job content" relates to elements like accomplishment,
accountability, advancement, and acknowledgment. Job satisfaction is higher in jobs with a
variety of tasks and less repetition. Job dissatisfaction results from a job with poor content.

 Organizational Level: Positions at higher levels are regarded as honourable, distinguished,

and opportunities for self-control. Higher level employees report higher levels of job
satisfaction than lower level employees.
  Opportunities for Promotion: Getting promoted in life is a success. More salary,
responsibility, power, independence, and status come with advancement. Therefore, the
likelihood of promotion influences how satisfied individuals are at their jobs.

 Workgroup: Groups are a frequent occurrence in enterprises. Humans naturally want to

interact with other people. Because of this trait, work groups are formed at the workplace.
Isolated employees detest their employment. Employee satisfaction is greatly influenced by
the work environment. An individual's level of satisfaction is greatly influenced by his or her
interactions with other group members, the dynamics of the group, its cohesiveness, and
personal needs for connection.

 Leadership Styles: The degree of job satisfaction is also influenced by leadership style.
Democratic governance improves work satisfaction. Democratic leaders encourage
coworkers to treat one another with warmth, respect, and camaraderie. On the other hand,
employees who work for autocratic bosses report feeling unsatisfied with their jobs.

B. Personal Determinants:
The psychological elements are connected to job satisfaction. As a result, a variety of personal
circumstances affect each employee's level of job satisfaction. Here are several examples:
 Personality: Each person's psychological circumstances influence their personality. The
psychological conditions are determined by elements like perception, attitudes, and
learning. As a result, these variables influence people's levels of satisfaction.

 Age: An important factor in determining job happiness is age. Employees that are younger
and have more energy are probably to feel more fulfilled. Employee aspirations rise as they
get older. They experience dissatisfaction if their objective is not realised.

 Education: Education gives people the chance to grow as people. It improves personal
intelligence and the evaluative process. Employees with advanced degrees tend to be
persistent, logical, and intelligent. As a result, they are able to comprehend the issue and
positively evaluate it.

 Gender Differences: Job happiness is influenced by the employees' gender and race. Even if
they work tiny jobs, women are more likely than men to be content with their lives.

Summary
Employee morale can be defined as an employee's disposition, level of contentment, and overall
outlook during their time spent working for an organisation or a company. If your company has a
bad culture, then there will be negative impacts in the form of low productivity, low employee
happiness, and other such things. To begin, it can most surely result in a bigger loss of employees,
which is called attrition.
Psychological factors play a role in job satisfaction. It expresses how she feels about her job.
Workplace happiness is a mentality. This opinion of the job has been formed permanently. While
performing their duties, employees interact with both people and other resources. They feel either
positively or negatively about the setting and content of the task during the process. Since the
human relations method has grown so well-liked, the idea of job happiness has become more
important.

Unit 10 ORGANISATIONAL CHANGE

Objectives
At the end of this unit, you will be able to:
 Understand concept and nature of organizational change
 Understand factors and forces in organisational change
 Understand the process of planned change
 Understand resistance to change
 Understand group dynamics for change

Introduction
The process of growth, decline, and transition within an organisation is referred to as organisational
change. Though one may believe that organisations are stable structures in a changing society, this is
not the case. Organisations, on the other hand, are constantly changing. Organisational change can
take a variety of forms. Organisations can change dramatically while keeping their names; the new
organisation may look nothing like the old one except in name. All of this contributes to
organisational change being a difficult and perplexing phenomena or process. It's a lot more
complicated than ordinary human behaviour. In order to be viable and scale, almost every business
will go through a transition or shift at some point. Whether you're hiring new staff, expanding a
department, or merging with another company, these changes can have a significant impact on your
company's trajectory.
Change is a natural part of life, and it allows for growth. It is a purposeful decision made by the
organization's management. Unfortunately, organisational change isn't always easy to adapt to, and
it can be frightening for all team members who are affected.
It's critical to understand the process and what to expect as a manager entrusted with overseeing
organisational change or leading your staff through it.
People work in production, research, development, administration, and other areas in any
organisation. In order to change, the organisation needs take stock of the situation and make
changes in their mindset and working style.

10.1 Concept and nature of organizational change

To stay competitive in domestic and international markets, businesses modify their structures and
work environments. Organizations, like the rest of the world, are continually evolving. Open systems
characterise business organisations. They are constantly interacting with the environment and must
adapt to environmental changes in order to survive and flourish. Not only should businesses adapt
to change, but they should also anticipate it and factor it into their plans and budgets. “Organisation
change is any substantive modification to some part of the organisation”. Workforce,
departmentation, span of control, machinery, technology, and other aspects of the organisation may
all require change, or only a portion of it. Organizations must make changes if they want to:
  Be adaptable to changing conditions.
 Compete on both a national and international level.
 Enhance their abilities, and

Mergers and acquisitions are something you should do.

The term "change" refers to a shift in the status quo or the creation of something new. Change is the
disruption of the current state of equilibrium. It is any change that occurs in an organization's entire
work environment.
John Bull defined organisational change as “When an organisational system is disturbed by some
internal or external force, change frequently occurs. Change as a process, is simply modification of
the structure or process of a system. It may be good or bad, the concept is disruptive only.”
The process of growth, decline, and transition within an organisation is referred to as organisational
change. Though one may believe that organisations are stable institutions in a changing society, this
is not the case. Organisations, on the other hand, are always changing. Organisational
transformation can take a variety of forms.
The quickness with which the social, political, and economic environments are changing has a
significant impact on both organisations and individuals. Though change has always been a part of
human existence, the rate of change has sped up in recent years—the majority of the current
advances have occurred in the previous 100 years and are expected to accelerate in the twenty-first
century. What has changed is the rate of change. The current era has seen more rapid, complicated,
chaotic, and unpredictable changes than ever before, affecting the very traditions of human
existence. Mr. Alvin Toffler stated in his brilliant book named future shock that humanity is
becoming a part of an environment so unfamiliar and complicated that it is frightening millions with
"future shock." Future shock happens when the types of changes and the rate at which they are
introduced exceed an individual's ability to adjust to them, resulting in a person's inability to absorb
change without exhibiting dysfunctional behaviour. The issue originates not from a specific shift that
is difficult to manage, but from the reality that society is in flux.

Organisational Change Characteristics:

 Moving from one state of equilibrium to another: Change entails transitioning from one
state of equilibrium to another. It disrupts the existing equilibrium and creates a new one in
which new ways of working are integrated into the system.

 In whole or parts: It may involve changes in individual areas of the organisation (technology,
structure, or people) or the entire organisation. Even if change is implemented in one part of
the company, it has an impact on the entire company. Change in one part, such as
technology, necessitates changes in people's learning and, in some cases, structure in order
to adapt that technology.

 Change is pervasive: It is not limited to a single organisation or country. It's a global

phenomenon. Every country, every organisation, its members, and every individual modify
their working patterns. However, the kind and scope of change differs depending on the
organisation.
  Responsive to environmental factors: Environmental influences have an impact on change,
both external and internal to the organisation.

 Continuous process: Change is a continuous process, not a one-time event. In order to

survive and expand in competitive markets, businesses must constantly change their
policies. Major changes are introduced using change agents, whereas minor changes are
absorbed into the system through internal modifications.

 Essential activity: Change is not a force that organisations may choose to respond to or
ignore. Change must be accepted by organisations if they are to exist. They can, on the other
hand, plan for change or respond to it. The former approach to change is beneficial to the
development and growth of an organisation.

 Change agents: Change agents are the ones who bring about change. Internal or external
change agents are also possible. Top leaders in the company might be internal change
agents. Executives engage external agents, who are outside specialists or advisors, to
kickstart the transformation process.

10.2 Factors and forces in organisational change

External Forces
Every organisation is part of a larger environment; no organisation exists in a vacuum. Each must
constantly deal with other businesses and people, including the government, unions, shareholders,
customers, and many more. Every organisation in the environment has objectives and duties that
are tied to one another. The environment we live in today is dynamic and will remain so.
Organizations must adapt to changes in the social, political, economic, technological, and legal
environments. Organizational changes, including those in key functions, the production process,
labor-management interactions, the nature of competitions, financial restrictions, organisational
procedures, etc., may come from these changes. Organizations must adapt if they are to survive in
the changing environment. How numerous environmental changes require organisations to evolve.
The following scenario illustrates how changes in many environmental conditions require change in
the organization:-
Technology: When the organisational environment undergoes a technological transition and other
companies adopt the new technology, the organisations under consideration become less cost-
effective and lose some of their competitive edge. As a result, it must incorporate new technology,
which changes the way it works, and it must find a new equilibrium.

Marketing conditions: Since every business exports its products to the environment, it must contend
with market competition. There are two different types of pressures that might impact an
organization's ability to compete: rival companies that provide the same items and customers who
don't purchase the product. Any modifications to these forces might necessitate appropriate
alterations to the organisation. For instance, numerous international companies entered the Indian
market after the economy was liberalised. Numerous Indian organisations were compelled by this to
adapt to the changing circumstances. As a result, there have been several instances of businesses
selling off non-core operations in order to focus on core operations, buy non-core operations, and
build competitive competence to handle threats from competitors. Similar to this, customers'
demands, preferences, and attitudes toward a product's price point may fluctuate. These
adjustments are being made by the organisations to bring products that satisfy the needs of the
consumer.

Social changes: Social changes are reflected in terms of people's demands, wants, and working
styles. Numerous factors, including the degree of education, urbanisation, sense of autonomy, and
global effect as a result of new information sources, have contributed to social changes. People in
the organisation behave differently as a result of these social changes. It must modify how it
functions there to conform to the needs of the populace.

Political and legal changes: Political and legal considerations in general define the activities that an
organisation can engage in and the approaches it will use to carry them out. Changes to these
political and legal aspects could have an impact on how the organisation operates.
Internal Forces

Any change in an organization's internal factors may also require adjustments to how it operates.
Changes in external factors are not the only ones that may require organisational changes. Due to
both deficiencies in current organisational procedures and changes in managerial personnel, such a
change is necessary.

Changes in the managerial staff: In addition to environmental changes, there have been changes in
the managing staff. Old managers are swapped out for new ones as a result of retirement,
promotions, transfers, or terminations. Each new manager adds his or her own thoughts and
methods to the company. More so in the organisation, the relationships. Changes in managerial
personnel result in changes to the relationships, especially informal ones. Additionally, even though
there are no changes in the staff, their attitudes do. As a result, an organisation must adapt as
necessary.
Deficiency in Current Organization: In some cases, modifications are required due to flaws in the
current organisational structure and procedure. These flaws could take the form of an
unmanageable management span, a high number of managerial levels, a lack of coordination
between various departments, communication barriers, a proliferation of committees, an
inconsistency in the formulation of policy, a lack of cooperation between the line and staff, etc.
There are two other internal elements that contribute to organisational changes in addition to these
two.
The type of workforce: Over time, the nature of the labour force has evolved. Different generations
have articulated various work values. Over-50s workers place a high emphasis on being loyal to their
companies. Mid-thirties to early forties workers are only loyal to themselves. The newest workforce
is committed to their careers. The makeup of the workforce is likewise rapidly evolving. The younger
generation of workers has received better education, and they are more critical of bosses' authority
and place a greater focus on human values. Their behaviour has also evolved significantly, making it
difficult for managers to guide individuals toward business objectives. A further burden on
management is the high rate of personnel turnover.
Many times, organisational adjustments are made merely to prevent inflexibility or inertia from
setting in. An organisation should be dynamic since there are times when a single method is not the
ideal management tool, according to a conscious manager. Thus, improvements are made to ensure
that employees grow to like change and that there is no needless resistance when significant
changes are made to the business.
10.3 The process of planned change
The process of preparing the entire organisation, or at least a large portion of it, for new goals or
new directions is known as planned change. Culture, internal structures, measurements and
records, processes, or any other important and connected component can all be used to guide
the path. Change is unavoidable, and the most successful businesses welcome it. Not all changes
can be anticipated. Organizations are occasionally faced with situations in which they must
quickly adjust to change. It's crucial to understand that change management and innovation
management are not the same thing. Innovation is a transformational process that necessitates
major changes.

Process For Planned Change

A sequence of measures must be considered in order to achieve the goals of planned
transformation. The following are the steps that must be taken as part of the planned change
process:

1. Recognition of the Need for Change

 Recognize the need for change as the first stage in the planned change process. It's
critical to identify a weak point in terms of materials, machineries, labour, organisational
structure, technology used, and so on. The correct identification of weak regions that
cause flaws in organisational activities aids in the implementation of appropriate
measures.

 Senior management is involved in the demand for acknowledgment at a higher level of

the organisation. They are the ones who realise that change is required.

 The change may be needed by external or internal factors, and it is determined by top
management.

2. Establishment of Objectives

 The goals for the planned change should be established. The change's goals must be
specific, precise, and feasible. They should be time-bound and numerically stated. They
should avoid becoming idealistic or overconfident. A manager must clearly identify goals
while taking into account organisational resources and possibilities.

 Prior to the start of the planned change, it is vital to specify the goals that will be
changed. Both threats and opportunities should be assessed, and the required
modifications in particular terms, such as changes to the product, culture, and so on,
should be determined. They should have specific objectives set for them.
3. Relevant Variables Diagnosis

 Another significant aspect of the planned change process is the analysis of many
relevant elements that may have an impact on the change's implementation. On the
basis of forecasting, future variables are estimated. Internal and external variables
are included in these variables.

 Money, resources, machines, and personnel are internal variables, whereas rival
strategy, government policy, technological change, and social and cultural attitudes
are external variables. The adoption of appropriate tools and strategies for planned
change is aided by a thorough examination of pertinent variables.

4. Appropriate Change Technique Selection

 Following a review of important variables that may influence change, the next phase
in the planned change process is to choose the best technique. The technique must
be evaluated in a scientific and practical manner in order to determine the optimal
course of action. After weighing all of the options, management decides on the best
course of action.

 Management must evaluate prior experience, current circumstances, and potential

contingencies while making such judgments. It also needs to estimate the relative
cost and benefit variables.

5. Planning for Change Implementation

 Following the selection of the suitable change technique, action plans for each step
of the proposed change must be developed. A detailed plan must be created,
concentrating on each and every modification activity. For each unit of work, these
thorough plans include the establishment of policies, norms, timelines, and budgets.
Without the formation of derivative or complementary plans, it is difficult to achieve
planned change.

6. Actual Implementation

 It is vital to implement change in practise after selecting a specific technique and

formulating supported plans. This step is where a plan's procedures are put into
effect. Management must provide required instruction and advice to subordinates in
order for the plan to be implemented. It is also vital to develop plans for necessary
resources as well as timely supervision and management of subordinates' actions.

7. Evaluation and Follow-Up

 The planned change procedure comes to a close with this stage. Change is a
continual function and, at the end of the day, the organization's operation. After a
period of time, the implementation of change must be evaluated in order to
 determine the real performance achieved. Only after reviewing real performance
can the manager take corrective action in a timely manner. And, if the actual
performance matches the plan, the chosen strategy must be implemented.

10.4 Resistance to change

The refusal to adjust to new conditions is known as resistance to change. It might be covert or
overt, organised or unorganised. Employees who discover they don't like or desire a change may
express their displeasure in public, which can be quite disruptive. Change is unavoidable and
continual. Human behaviour, on the other hand, has consistently demonstrated a resistance to
change in existing methods and ways of working. Organisations must constantly adapt to
changes in order to advance their business processes. Organisational resistance to change, on
the other hand, is a key impediment to an organisation's growth and success. Such opposition to
organisational change necessitates the implementation of a well-defined change management
strategy. The resistance to change can be regarded as a significant challenge to the development
of new technologies and processes. Techniques and organisational structures are updated on a
regular basis. Individuals who are used to pre-existing ways, on the other hand, are hesitant to
learn and execute new tactics, resulting in resistance to change. Employee demonstrations and
strikes, as well as implicit behaviour, can all be examples of resistance. The organisation, through
its managers, must take the lead in overcoming resistance to change and developing a gradual
adaptation to change that ensures productivity and efficiency at work.

Employees may also be uneasy about the changes being implemented and express their
dissatisfaction, often unconsciously, by their actions, language, and the tales and discussions
they share in the workplace. In the worst-case situation, employees may be adamant in their
reluctance to accept any changes, resulting in friction and confrontation within your company.

Reasons for Resistance to Change

The following are the common causes of change resistance in all organisations:

 People are unwilling to leave their comfort zones, as defined by present ways, in order
to learn something new.

 Changes in methods and approaches are accompanied by shifts in authority,

responsibility, and influence. People who are negatively affected by the changes enacted
are the source of organisational opposition to change.

 People adhere to pre-existing customs due to insecurity, laziness, and a lack of

innovative approach, and hence resist change.

Types of Resistance to Change

The following are the several types of change resistance:

  Logical Resistance: Such resistances arise as a result of the time spent adapting and
adjusting to changes. For example, when talkies were introduced, movie studios had to
adapt their procedures to accommodate the transition from silent to talkies. In a logical
sense, this required time for sound engineers and even directors to adjust.

 Psychological Resistance: In change management, resistance to change is frequently

caused by psychological factors such as dread of the unknown, hatred for the
management, and other mental variables such as intolerance to change.

 Sociological Resistance: Sometimes resistance comes from a group of people rather than
a single person. Individuals do not allow their acceptance in such situations for fear of
breaking links with the group.

Managing Resistance to Change

An organisation's effort to manage resistance to change should be accompanied by effective

employee education and training on the changes undertaken. The following concerns must be
addressed by the organisation in order for a smooth transition to occur:

 Changes should be gradual which means that it should be welcomed in stages. A one-
time large modification would bring activities to a halt right now.
 Changes should not harm worker safety.
 With initial changes, managers with leadership skills would eventually push staff to do
so.
 Employees who will be affected by the changes must be polled for their thoughts.
 Employees' confidence and efficiency will be boosted by educating and training them on
the new methodology.

10.5 Group dynamics for change

The people component of every organisational change endeavour is, of course, change
management. However, due to other functional or system-related challenges that may develop, it
may receive less attention or even be completely ignored.
Finding the most efficient way to communicate the right change messaging to affected stakeholders
in a world where many of their project management peers are technically oriented is a problem for
any transformational change manager.
We must continue to assess the old communication techniques that are used, or recycled, to make
sure they are still producing the desired results. It may be motivating to reach the ideal combination
of people emphasis and technological focus.
Recently, when I was reading about group dynamics—a branch of psychology that has always
captivated me—I had the thought that it would be advantageous to somehow include this slant into
my change management strategy.
It is okay for members of any particular group to stand out in terms of accomplishments,
entertaining others, leadership abilities, originality, etc., but it is less acceptable if those acts have
negative overtones. This is because group dynamics prioritise inclusion.
According to Tuckman's Stages (Bruce Tuckman, 1965), the first stage of Forming is when we act as
though we understand the nature of the change that has been noticed. We then move on to
Storming as a group, where we try to comprehend the changes, challenge them, and discover more
information. The adjustments that have been conveyed and schooled about are next incorporated
and embedded in Norming, and lastly we go to Performing where we become progressively
cooperative and very effective.
What will happen if team or group members fail to move past the Forming stage and keep acting as
if they understand what is occurring, why it is happening, and how it will affect them? As the group
develops, there is a much increased chance that these individuals will be exposed in a negative light,
such as being unable to carry out their role in the future state.
Being a part of a group, organisation, or work stream is important in group dynamics, and being
perceived as being outside the group is unsettling, uncomfortable, and unwanted.
So now think about this from the standpoint of change management. How can the effectiveness of
group dynamics be used to enhance the change effort, strategy, and adoption?
If we understand the psychology of the workforce and support the majority, the minority will
eventually conform or comply rather than stand out in a bad way. It's crucial to avoid doing this in a
way that may negatively affect morale.
10.6 Force field analysis
Once the root cause has been determined, a fundamental tool for root cause analysis called force
field analysis can assist you in taking appropriate action. The method is predicated on the idea that
any condition results from an equilibrium between forces for and against the existing state.
Reinforcing positives and eliminating or lowering negatives will help bring about a change by
balancing the opposing forces and/or boosting the favourable forces.

What force field analysis does is

presents a situation's advantages and disadvantages in a way that makes them comparative.
takes into account all potential changes.
promotes consensus regarding the relative importance of the variables on each side of the balance
sheet.
encourages open discussion of a problem's causes and potential solutions.
PROCESS OF FORCE FIELD ANALYSIS
Implement a force field analysis by doing the following:

List every potential internal and external force that could support or undermine the proposed
solution.
Determine the relative power of each force.
Draw a force field diagram of the forces, with the length of each arrow corresponding to the
strength of the force it represents.
Discuss ways to raise the forces for the change and decrease the ones against it for each force, but in
particular for the stronger ones.
10.7 Change agents
A person from within or outside of an organisation who assists another organisation or portion of an
organisation in modifying how it conducts its operations is referred to as a change agent.

One way to think of them is as a change agent, or a person who has the ability to bring about
transformations by motivating and swaying the actions of others. An individual who acts as a change
agent will advocate for, champion, facilitate, and support the implementation of change inside an
organisation. They concentrate on individuals and the relationships that exist between them. A
change agent is someone who motivates and persuades key individuals to bring about the essential
changes for the transformation. These changes may include shifts in the individuals' wants, attitudes,
and actions. Change agents play an essential part in the field of organisational change management
(OCM), which is an essential part of ensuring the success of any company change. OCM is a discipline
that focuses on the people who are responsible for driving change.

To refer to someone as a "change agent" is equivalent to using the terms "agent of change" and
"change advocate." A "change champion" performs duties that are analogous to those of a "change
agent." On the other hand, a change champion may be little more than a figurehead, whereas a
change agent typically operates "behind the scenes" to achieve their goals.
A change agent is a person who promotes and supports a new way of doing something within a
company, whether it be the use of a new process, the adoption of a new management structure, or
the transformation of an old business model into a new one. In the world of business, a change
agent is an individual who fulfils this role.
An individual who serves as a catalyst for the change management process is referred to as a change
agent, often known as an advocate of change. By motivating and influencing others, they assist an
organization—or a division of an organization—in changing how it functions. A change agent will
advocate for, support, enable, and encourage the implementation of change inside an organisation.

The duties of change agents

Key tasks carried out by a change agent include:
 Describing the benefits of change for both the company and the workforce
 Obtaining input from the team members and workers who are involved, incorporating it into
the implementation process, and
 Recognizing the responses of people to change and lowering resistance to change
 Proactively including workers in change management activities.
 Encouraging and assisting staff members to champion change and spread it
 Locating and successfully guiding additional change agents and consultants
 Giving advice on difficulties the change management lead is facing

Summary
The term "change" refers to a shift in the status quo or the creation of something new. Change is the
disruption of the current state of equilibrium. It is any change that occurs in an organization's entire
work environment. John Bull defined organisational change as “When an organisational system is
disturbed by some internal or external force, change frequently occurs. Change as a process, is
simply modification of the structure or process of a system. It may be good or bad, the concept is
disruptive only.” The process of growth, decline, and transition within an organisation is referred to
as organisational change. Though one may believe that organisations are stable institutions in a
changing society, this is not the case. Organisations, on the other hand, are always changing.
Organisational transformation can take a variety of forms

Unit 11 ORGANISATIONAL CONFLICT

Objectives
At the end of this unit, you will be able to:
 Understand concept and nature of organizational conflict
 Understand stages of organizational conflict
 Understand the challenging views of organizational conflict
 Understand management of organizational conflict

Introduction
If disagreements and differences of opinion become a source of conflict, the organisation must act
quickly. Conflict in the workplace can be beneficial or harmful to the organisation. The Chinese
character for conflict, in fact, has two meanings: opportunity and risk. As a manager, we must
determine and concentrate on how to maximise the positive features while minimising the
unfavourable ones. Our objective must be to improve the benefits gained from managing and
encouraging positive conflict, such as task and process conflict, while also managing, resolving, and
lowering the negative impacts of relational conflict. Organizational conflict has been defined in a
variety of ways by various authors. Frustration, incongruence, incompatibility, and mismatch are
common key terms used in these definitions.
Conflict is described as a breakdown in decision-making standards that arises when an individual or
group has difficulties choosing an alternative.
The term "conflict" can be defined as "collision" or "disagreement." The conflict may arise between
two individuals or between two groups of organisations; it may arise between two individuals or
between two groups of organisations when their goals and events are incompatible. Conflict,
according to Chaung and Megginson, “is the struggle between incompatible or opposing needs,
wishes, ideas, and interest of people.” When an individual or a group encounters a goal that neither
party can achieve satisfactorily, conflict ensues. Conflict, evasive fights, riots, and wars have all
become common terms, and dozens of armed combat situations may be found around the world
almost every day of the year. These are more violent forms of conflict, but a manager deals with a
lot of minor and non-violent resistance like disputes, criticism, and disagreement. Conflict can be
constructive or destructive, and it can be positive or negative. It could be cognitive or affective in
nature.
When personnel from differing backgrounds and work styles are brought together for a common
business goal, workplace conflict is unavoidable. Conflict can be controlled and resolved, and it
should be. The chances of workplace conflict have increased, with tensions and concerns at an all-
time high as a result of the current political division and racial injustice conversations at work.
11.1 Concept of organizational conflict
Organisational conflict refers to disagreements among employees or a group of people striving to
achieve a certain organisational goal. When a manager or supervisor is unable to define the task that
has been assigned to the staff, this occurs. Conflict in the workplace can be both constructive and
detrimental. In an organisational setting, however, negative adoption is common. Employee conflict
can arise in a company, just as it might in our personal lives, but it must be resolved as soon as
feasible. Otherwise, the organisation will have to deal with the difficulty of maximising its
advantages or earnings. Organisational conflict, also known as workplace conflict, is defined as a
condition of dispute or misunderstanding inside an organisation caused by competing needs, ideas,
views, values, or goals. When two or more people interact at work, conflict arises when their
perspectives on a task or a decision differ.
When workers demand more pay but the firm owner or management wants pay levels to stay the
same, this is an example of organisational conflict.
When a conflict becomes an issue, it:

 Inhibits productivity
 Causes a drop in morale
 Leads to more and longer-lasting conflicts, and
 Leads to unsuitable behaviour

Indicators of Conflict

 Body language 
 Colleagues who do not speak to or ignore one other
 Deliberately undermining or refusing to cooperate with one another, resulting in the team's
demise contradicting and disparaging each other
 Differences of opinion, regardless of the topic
 Holding back bad news
 Pleasant surprises
 Public declarations that are forceful
 Using media to air disagreements
 Wanting to be powerful
 Lack of respect is getting worse.
 Disagreement in the open
 Lack of candour when it comes to money challenges or other delicate issues
 There are no defined objectives.
 There was no discussion of success, failure to meet goals, and no attempt to objectively,
thoroughly, or at all evaluate the superintendent.
 When issues affect the entire organisation, factions convene to debate them individually.

11.2 Nature of organizational conflict

A disagreement between two or more persons, groups, or organisations is referred to as conflict.
This difference in opinion could be minor or significant. The following are the nature or features of
organisational conflicts
Conflicts' Nature or Characteristics
 Conflict emerges as a result of two opposing viewpoints. There is no conflict if 'X' believes his
goals are incompatible with those of 'Y,' and 'X' has no way of preventing 'Y' from achieving
his goals.

 Conflict is a layered process as conflict takes place in levels. The first layer is always
miscommunication. Differences in values, viewpoints, interests, and interpersonal
relationships make up the remaining levels. It's also known as a process because it starts
with one party believing the other is working against or harming their interests and ends
with competing, cooperating, compromising, or avoiding.

 Everywhere there is conflict. There are no two people alike. As a result, they may differ from
one another. The disagreements, whether they are based on ideals or not, can lead to
conflict. Despite the fact that conflict is unavoidable, it can be minimised, deflected, and/or
resolved. Because we're dealing with people's lives, employment, children, pride, self-
concept, ego, and sense of mission, conflict arises. Conflict is unavoidable and frequently
beneficial; strong teams, for example, go through a “form, storm, norm, and perform”
phase.

 Conflict can exist on a latent or overt level; however, the term "conflict" is usually used to
refer to overt acts.

 Conflict is defined as intentional conduct. 'X' tries to prevent 'Y' from achieving his (X's)
objectives. There is no conflict if the intervention is unintentional.

 Conflict arises when two or more parties pursue goals, values, or events that are mutually
exclusive. It is predicated on the notion that there are two or more parties with mutually
contradictory interests or ambitions.

 Competition is not the same as conflict. In a conflict, one side sees an opportunity to
obstruct the other's ability to get resources or engage in activities. Both sides want to win in
a competition, but neither side actively interferes with the other.

 Individuals, groups, and organisations all have varied needs and values, but limited
resources. Conflict is a natural part of life. As a result, conflicts will inevitably arise as a result
of this incompatibility. The disagreement itself is not an issue; however, if it is properly
managed, it becomes one.

 Conflict affects everyone as it can happen within an individual, between two or more
individuals, in groups, or between organisations.

 Conflict is not one-dimensional as it manifests itself in several forms depending on the

severity and capability of the situation. It has the potential to enhance even the most
challenging situations.

11.3 Stages in organizational conflict

  Intra-individual Conflict
This level refers to an internal conflict involving only one person. Your own thoughts, feelings, ideas,
values, and predispositions are the source of this struggle. When you're torn between what you
"want to do" and what you "should do," it can happen.
Intrapersonal conflict is a type of internal conflict that involves a person's goal conflict or cognitive
conflict. It involves two opposing desires or aims, yet the desires or goals are within the same person
in this scenario. Individuals face goal conflict when their actions produce outcomes that are mutually
incompatible or have compatible parts (both positive and negative outcomes).
Intrapersonal conflict occurs when a person must make a significant personal decision about his or
her work situation and must interact with oneself to determine the best course of action.
Reyna, for example, is looking to add to her sales staff. She evaluates a few prospects and believes
that three of them would make good salespeople, but she can't decide which one to hire. She
postpones hiring for a month while she evaluates her options.

 Inter-individual Conflict

In a larger organisation, this dispute occurs between two or more people. Different personalities
or ideas on how to achieve goals can cause conflict. It's possible that interpersonal conflict
occurs without either party noticing it.

Tanya has worked as a digital marketer for her employer for four years and has always expected
to succeed the director of marketing when he retires. When it came time to fill the position,
however, the corporation hired someone who had only been with the company for a year. Tanya
was dissatisfied with both her former and new supervisors, but she never expressed her feelings
to either of them.

When there are several people with different ideas, histories, and experiences working toward a
same objective, this level of conflict arises between members of a single group. Even though
they all desire to accomplish the same thing, they may disagree on how to get there. When team
members have different communication styles and personalities, intragroup conflict can arise.

Example: A company is going to launch a new product, and Josh and Ashley believe that a direct
mail campaign to a specific audience is the ideal marketing plan. Beth and Tom believe that
running ads on social media is a better strategy. An influencer campaign, according to Adam,
would have the greatest impact. Due to the disagreement, no promotional strategy has been
developed, despite the fact that the launch date is only two weeks away. The atmosphere is
tense, and the delays are affecting other departments.

 Inter-group conflict

This level of conflict arises when distinct factions within a bigger organisation or those with different
main aims collide. For example, an e-commerce company's marketing staff is advertising a brand-
new project that is expected to boost the average order value of each order by 15%. Customers are
notified of the launch date and a timetable is created. Despite their best efforts, the web developers
in charge of building and deploying the additional functionality on the website are behind schedule.
Web developers are irritated by unrealistic timelines, and the marketing department is irritated by
the launch's delay
 Inter-organisational Conflict

Conflict between organisations is referred to as inter-organizational conflict. Inter-organizational

conflict occurs when different businesses compete against one another. Conflict can also arise
between groups that are interdependent in some way. This conflict could be between buyer and
supplier groups over raw material amount, quality, and delivery timeframes, as well as other
policy problems.

 Intra-Organisational Conflict

Intra-organisational conflict is a type of conflict that occurs within a company.

There are four different types of intra-organizational conflict:
 Vertical Conflict: Any conflict between levels in an organisation is referred to as vertical
conflict; one example is superior-subordinate conflict. Superiors often try to control
subordinates and subordinates, resulting in vertical conflicts.

 Horizontal Conflict: In an organisation, horizontal conflict refers to disagreements between

individuals or departments at the same organisational level.

 Conflict between line and staff departments: Most organisations have staff departments to
help line departments. The line-staff interaction is prone to squabbles. Personal qualities of
staff managers and line managers are often distinct. Staff employees are more educated,
come from a diverse range of backgrounds, and are younger than line staff. Diverse values
and views are typically associated with these different personal qualities, and the emergence
of these different values tends to cause conflict.

 Role Conflict: A role is a collection of actions that others expect people to do in their jobs.
Conflict is a common part of playing a role.

11.4 Challenging views of organizational conflict

Your leadership communication skills will improve and you'll spend less time trying to resolve
conflicts if you can get over these six obstacles.
impediments to conflict resolution
Whether it be from the employees they lead, clients, vendors, coworkers, or personal dispute,
managers wind up devoting a lot of time to settling conflicts in the workplace. Additionally, studies
have shown that disagreement has significant direct and indirect expenses that are detrimental to
your bottom line. Experts will recommend a variety of conflict resolution techniques, but no matter
which one you choose to use, there are six basic obstacles that people will encounter. Here is a quick
explanation of each of these six obstacles to dispute resolution. So that you can keep them in mind
the next time you have to resolve a problem, I urge you to keep them in mind, possibly print this list,
and hang it in your workplace.
1. Taking the Offense
We all have a tendency to become defensive in the face of disagreement. The issue is that, by taking
a defensive stance, you are essentially "throwing fuel to the fire." Your protective reaction will
simply inflame the other person and prevent you from truly hearing and comprehending their point
of view on the matter. In other words, it prevents the open, two-way conversation necessary for a
successful resolution.
Force yourself to be silent and actually hear what the other person has to say rather than defending
yourself. If you have to, ask them to provide you more information and comment on their viewpoint.
2. Ignoring the Subject as Insignificant
Do any of the following sound familiar to you?
You're exaggerating the situation, I say.
"That shouldn't be how you feel.
When someone vents their concerns to you about a problem and you respond in this way, you are
minimising the issue as trivial. It must become significant to you if it is important to them. You
should be aware that feelings are merely information and are neither right nor incorrect. Never utter
the phrase "You shouldn't feel that way," for example.
Get to the bottom of why they are feeling that way rather than ignoring them. Asking for clarification
and then repeating back to them what you just heard will accomplish this. By doing this, you can be
certain that you fully comprehend their point of view and give them the assurance that they are
being heard. Remember that the goal is to just understand where the conflict is coming from, not to
judge whether their viewpoint and sentiments are correct or incorrect.
3. Making snap judgments without having all the information
This is a tremendously challenging question, especially since our brains have evolved to make
complex decisions fast by using previous experiences as a guide. This was beneficial to humans in
prehistoric times when we hunted and scavenged for food, but it is less beneficial today when trying
to resolve conflicts.
Our defensiveness, particularly if the conflict is about us personally, might lead to us making snap
judgments. It can also happen when you're mediating a dispute, like when two coworkers are at
odds. Before hearing the other side of the tale, you need to be careful not to draw any premature
conclusions.
Although it might be very difficult to resist the need to jump to conclusions, you can do so by holding
off on making any decisions until you have heard both sides of the story. If there are witnesses to the
conflict, it may be wise to incorporate them in the account.

4. Ignoring others' opinions

We all engage in this habit of mentally preparing our response instead of listening. Similar to many
of these other obstacles, the issue is that we don't give the other person a chance to be heard and
we don't give ourselves a chance to see things from their perspective. In a conflict situation, active
listening enables all parties to change the tone of the conflict, become less combative, and show
others that they are appreciated.
Make yourself stop and listen rather than trying to plan what you are going to say in response. When
you grasp what they are saying, repeat it back to them to show the other person that you are paying
attention and to make sure you understand what they are saying.
5. Lack of Ability to Understand Others
Some people just naturally struggle with empathy, especially in conflict situations where you know
the other party is at fault. However, whether or not someone is right or wrong has nothing to do
with whether or not you can feel empathy for them. You're merely letting the other person know
that you've heard their side of the story and that you recognise their feelings.
Empathizing is more about expressing that you are aware of how they are feeling than it is about
giving a long speech. You may say, "I assume you might also be thinking, 'Why do I even try?'" or
something like. What difference does it make to anyone? Are you experiencing that? Even if you're
not in a very sympathetic mood toward the other person, doing this is a terrific way to convey
empathy and understanding.
6. Inability to remain composed
There are always those moments when everything simply blows up, and the battle intensifies.
People are speaking louder, acting more hostilely, and going into "attack mode." In this situation,
you will start to lose control as well. But in these circumstances, you must keep composure and
make sure you never lose your composure. This is possibly the most detrimental obstacle to conflict
resolution that you could erect.
First, pause to consider what you are going to say or do. Will this make things better or worse?
When you do speak, keep your voice quiet and collected to help yourself and others relax. Create a
space where individuals feel comfortable voicing their thoughts in an open manner, and make sure
that any comments you give are factual and free of bias. These actions will prevent you from stoking
the fire and, hopefully, defuse the situation so that everyone can move toward a resolution.
Always keep in mind that not every dispute will end in a win-win outcome; it's a part of life.
However, there are strategies and techniques at our disposal for handling conflict constructively and
resolving these problems in a way that allows everyone to feel heard and respected afterward. Is it
really what we all want at the end of the day?
11.5 Positive outcomes of organizational conflict
 Changes Things
Conflict quickens the pace of change inside an organisation, particularly in small enterprises
where it is simple to create and put new rules into place. Conflict forces the organisation to
change its operating policies and processes. Extreme conflict may necessitate a complete
leadership changeover, bringing in new managers with innovative ideas.
 Goal Alignment
Within the organisation, departments, teams, and groups are interrelated. Due to divergent
goals, competition for limited resources is a primary cause of conflict. To promote
cooperation among competing parties, conflict forces the organization's leadership to
refocus its aims toward shared goals. Better goal congruence should arise from reviewing
the company's goals and objectives to help meet the requirements of opposing parties, so
that everyone is working together to advance the company.

 Innovation
Healthy competition that emerges from conflict encourages creativity and innovation among
workers. There is a strong sense of necessity during times of conflict, which causes
employees to develop different points of view. Employees frequently believe that in order to
 compete with their coworkers internally, they must create fresh business plans and
methods.

 Creativity and aptitude for solving problems

Employees that are dedicated to overcoming their disagreements come together and
brainstorm fresh approaches to problems and conflicts. They are pushed to reconsider their
previous beliefs and starting position. This encourages original thought processes to produce
original solutions. As a result, disagreement has the unintended benefit of enhancing
employee creativity and their capacity to solve challenges.

 Empathy
When workers sit down together to resolve disputes, they are more able to comprehend
one another's perspectives, feelings, and points of view. Since personality conflicts and
differences in opinion cause the majority of confrontations. Therefore, team members
would be more likely to avoid conflicts in the future if they developed and learned empathy.

 Feelings manifested
Employees have the chance to communicate their actual feelings and emotions during
conflicts. It's crucial to offer emotions, especially negative ones like mistrust, resentment,
rage, and fear, several opportunities to express themselves. These emotions may ignite in an
unanticipated way that causes greater harm if they are not communicated appropriately and
in a timely manner. Their annoyance shouldn't be allowed to fester for too long.

 Emergence of new leaders

It is frequently noted that workplace confrontations result in new leadership. Conflicts
frequently force those reserved team members into a position where they can begin to
show signs of leadership. This occurs when aspiring leaders are given the chance to hear
opposing points of view and arguments. They make their presence known and contribute a
new viewpoint to dispute resolution. And as a result of this circumstance, they become
excellent team leaders who can guide them through difficult situations.

 Modifications to Communication Style

Team members come together during conflict and have the chance to learn about each
other's perspectives and ideologies. It aids in determining where misunderstandings arise
and where communication fails. When communication gaps are accurately recognised and
studied, team members can also learn what the best communication style going forward
should be. What can be learned about how to build good communication and what channels
should be used going forward to prevent such conflicts.

11.6 Negative effects of organizational conflict

The following are some negative impacts of conflict at work:
 Decrease in productivity
Employees must spend their valuable time managing conflicts when they arise. At work, they
engage in political games, take sides, and talk. All of this depletes their positive energy, and
they begin to lose concentration on the job at hand, which ultimately results in decreased
productivity.

 low spirit
 Team member morale and motivation are impacted by conflicts. Employees will naturally
become stressed out and unable to concentrate on their work if issues are not resolved.
Employees become unsure of their roles and the future when conflicts persist for an
extended period of time. Their low morale is primarily caused by this mental state.

 Increased employees’ turnover

Conflicts at work that persist lead some employees to decide to leave the company. They
make this choice to leave the toxic relationship because they are frustrated and under
mental strain. When senior managers or executives leave an organisation due to unresolved
dispute, the organisation suffers a significant loss. This deals a major harm to the
performance and reputation of the organisation.

 Absenteeism
Employees that are stressed out at work may take time off, which might increase
absenteeism. They experience burnout as a result of ongoing disagreements at work.
Additionally, they begin to avoid the unpleasant and toxic office atmosphere that conflict
causes because they feel powerless to resolve it. Employee absences worsen the situation
because productivity continues to decline and because it makes it more expensive to hire
new workers.

 Issues with Mental Health

Conflict at work has a negative impact on employees' wellbeing, particularly their mental
health. They might have headache, insomnia, appetite loss, anxiety, and depressive
symptoms. When team members are stuck and unable to envision a resolution to persisting
issues, they get worried. Employees who believe that workplace disagreement is resolved
through communication are less likely to face unfavourable health outcomes, according to a
research study. Additionally, those who claim that no attempts are made to mediate
problems at work report higher levels of stress.

 Financial expense
Conflicts cost money as well. Businesses that are unable to handle workplace disputes suffer
financial losses. According to research done in 2008 by CPP Inc., US employees spend 2.8
hours each week settling disagreements, which costs the country close to $359 million.
When there is a significant turnover of employees owing to disagreements, organisations
must incur additional costs for hiring and training replacement workers. Unresolved disputes
cause businesses to lose consumers, which results in monetary loss and a negative
reputation.

 Communication Issues
Unresolved disagreement at work also leads to poor communication. Employees lose their
ability to communicate effectively if there is continual squabbling and bickering at work. This
leads to miscommunication, mistrust, and low morale, all of which exacerbate the problem.
The secret to performance is effective communication. Additionally, poor communication
leads to low productivity, employee turnover, and financial loss.

 Violence
Unchecked or unresolved conflict can result in fierce fighting and ignite violence. When
there is a problem but no real attempt is made to resolve it, it occurs. If violence takes
occurred at work, firms suffer significant legal, financial, and reputational losses. Violence
 also has a negative effect on workers' productivity, morale, and physical and mental health,
in addition to other effects.

11.7 Management of organizational conflict

Ways to Manage Workplace Conflict

1. Have a conversation with the other person.

 Request that the other person provide a time when they would be available to meet.
 Make plans to meet at a location where you won't be disturbed.

2. Concentrate on actions and events rather than people.

 Instead of saying "When you do ...", say "When this happens..."
 Instead of generalising, describe a single instance or incident.

3. Pay attention to what's being said.

 Instead of getting ready to react, pay attention to what the other person is saying.
 Interrupting the other person is not a good idea.
 Rephrase what was stated once the other person has finished speaking to ensure that
you understand it.
 To clarify your understanding, ask questions.

4. Determine where there is agreement and where there is disagreement.

 Make a list of the places where you agree and disagree.
 Inquire if the other person agrees with your evaluation.
 Modify your assessment until you and your partner agree on the points of contention.

5. Make the areas of conflict a top priority.

 Talk about which areas of conflict are the most essential to you to resolve.

6. Make a strategy for resolving each conflict.

 Begin with the most serious conflict.

 Concentrate on the future.
 Make plans to meet again in the future to continue your discussion.
 7. Stick to your game plan.

 Keep talking until you've gotten through each point of contention.

 Maintain a collaborative, "let's figure it out" mindset.

8. Build on your achievements.

 Look for opportunities to highlight accomplishments.

 Compliment the other person's accomplishments and insights.
 When you make progress, even if it's a small step, congratulate each other.
 When scheduled discussions give way to continuing, amicable communication, your hard
work will pay off.

Conflict Management Strategies

Interpersonal conflict can be handled in five different ways. The styles are distinguished by their
positions on two dimensions: I care for one's own well-being and (ii) concern for the well-being of
others. The urge to address one's own concerns is determined by how assertive or unassailable one
is in pursuing own goals. Again, one's willingness to alleviate others' concerns is contingent on how
cooperative or uncooperative one is. The five approaches of interpersonal conflict resolution
represent different mixtures of assertiveness and cooperation. The nature of the circumstance
factors and the persons are likely to influence the choosing and implementation of the five conflict
resolution methods.
Avoiding or Withdrawing: This style allows a person to avoid conflict, disregard issues, or remain
neutral. This personality trait displays a dislike for tension and frustration, as well as a decision to let
a disagreement work itself out. Withdrawal, indifference, evasion, apathy, flight, dependence on
fate, and isolation are all behaviours linked with this technique. The conflicting parties fail to address
critical issues. As a result, neither the conflict nor its causes are adequately resolved.
Forcing or Dominating Style: It is a win-lose strategy to interpersonal interaction that refers to
aggressive and uncooperative behaviour. Those who choose the forceful approach are focused on
achieving their own objectives without regard for others. Aspects of coercive authority and
dominance are present in this style. It may assist a person in achieving personal goals, however, like
avoiding style, forcing has a negative impact on others. This leadership style is characterised by
direct physical aggressiveness and a significant dependence on punishment to establish control over
others. The gain of one party is the loss of another. It does little in terms of finding innovative,
constructive solutions that are acceptable to all.

Accommodating or Smoothing Style: This is a term that relates to both cooperative and non-
aggressive behaviour. Accommodation can be a selfless deed, a long-term plan to persuade people
to cooperate, or a capitulation to others' views. While some people view people who use the
accommodating manner positively, others may see them as weak and submissive. When someone
uses an accommodating manner, they can act as though the dispute will go away in time and ask for
collaboration. Reassurance and support will be used to try to alleviate tensions and stress. The
emphasis is on the contending groups' similar interests, with a de-emphasis on their differences. The
parties will be generous and selfless. Smoothing is a more sensitive strategy than withdrawal.
Smoothing might be utilised in the short term when a temporary solution is required.
Collaborating or Win-Win Style: It describes assertive, cooperative, and forceful behaviour. It's a
win-win strategy for resolving interpersonal conflicts. When someone collaborates, they want to get
the best results possible. Parties disclose information openly, make an effort to listen, and create
empathy. The issue is being attempted to be depersonalised. Parties debate the topic of gathering all
essential information, considering a complete range of possibilities, and attempting to solve the
problem rather than simply accommodating differing points of view. The problem is mutually
defined by information sharing and communication. All partners are considered as contributing to
the success of the project.
Compromising or Lose-Lose Style: This describes a level of collaboration and assertiveness that is
halfway between the two extremes. This personality type engages in a give-and-take strategy and is
capable of making a series of concessions. This is a time-honoured means of resolving disputes.
Because each party is expected to give up something of value in exchange for a concession, there is
no clear winner or loser. The emphasis in this style is on the process of compromise and bargaining.
The compromise style, unlike the cooperating style, does not increase mutual satisfaction. Moderate
but partial satisfaction is obtained through compromise.

Effectiveness of Various Styles

Strategy Best Used When

Avoidance When emotions are running high and time is

needed to calm down, or when the possibility
for disruption from assertive action outweighs
the benefits of resolution, conflict is
insignificant.

Accommodation You don't care about the disputed issue, and

you're trying to build up credit for future
problems.

Forcing You need a rapid resolution on crucial issues

that necessitate unpopular acts and are not
dependent on others' loyalty to your approach.

Compromise When it is desirable to reach a temporary

solution to a complex issue, or when time
limitations demand an expedient solution,
conflicting parties are about equal in power.

Collaboration When all parties are sincere about finding a

win-win solution and the issue is too vital to be
compromised, time demands are minimal.

Summary
The term "conflict" can be defined as "collision" or "disagreement." The conflict may arise between
two individuals or between two groups of organisations; it may arise between two individuals or
between two groups of organisations when their goals and events are incompatible. Conflict,
according to Chaung and Megginson, “is the struggle between incompatible or opposing needs,
wishes, ideas, and interest of people.” When an individual or a group encounters a goal that neither
party can achieve satisfactorily, conflict ensues. Conflict, evasive fights, riots, and wars have all
become common terms, and dozens of armed combat situations may be found around the world
almost every day of the year. These are more violent forms of conflict, but a manager deals with a
lot of minor and non-violent resistance like disputes, criticism, and disagreement. Conflict can be
constructive or destructive, and it can be positive or negative. It could be cognitive or affective in
nature. Misunderstanding, Lack of Role Clarification, Individual differences, Ineffective
Communication and Lack of Role Clarification etc are some reasons of conflict in
organisation.Conflicts at work have a variety of effects on both employees and employers. Conflicts
can have a variety of detrimental effects, including decreased production, low morale, mental health
issues, and financial costs. However, the reality is that, despite the perception that conflict is bad, it
can also have positive effects. These advantages can be used to strengthen and increase the
productivity of teams if they are handled timely and properly.

Unit 12 ORGANIZATIONAL EFFECTIVENESS

Objectives
At the end of this unit, you will be able to:
 Understand concept of organizational effectiveness
 Understand effectiveness vs efficiency
 Understand the theories of organizational effectiveness
 Understand adaptive coping cycle

Introduction
The term "organisational effectiveness" describes how a company has come to fully understand
itself, in part because of: Leaders who set clear objectives for their teams and explain how to
effectively carry them out. Management involves putting in place transparent communication
channels and decision-making processes. Organizations utilise the notion of organisational
effectiveness to determine how successful they are in achieving desired results. The extent to which
businesses fulfil the objectives they have set represents organisational effectiveness, an issue that
takes into account a number of distinct elements.
12.1 Concept of organizational effectiveness
An organization's efficiency in achieving its goals with the aid of available resources while without
placing an undue burden on its people is measured by the concept of organisational effectiveness. It
concerns the company's ability to produce the desired quantity of goods, the effectiveness of its
process, and the amount of waste generated. It is a proven fact that when the leadership system is
functioning at its finest, performance inevitably increases. The role of a leader includes seeing the
future, setting goals, getting organised, formulating strategies, putting them into action,
communicating clearly, ensuring that goals are aligned, cultivating talent, fostering responsibility,
allocating resources, and producing results. To achieve its objectives, a company requires a defined
mission and vision that can deal with the rapidly evolving industry. Retaining, motivating, and
developing human resources should be a top priority for a company entity if it wants to achieve
organisational effectiveness.
The following are some variables that affect organisational efficiency:
 Casual variables - These are independent variables that may be changed by the organisation
and its management, such as its leadership, business strategies, and policies, skills, and
conduct. The casual aspects can determine how an organisation will develop.

 Intervening variables –Motivation, performance objectives, attitude, loyalty, and perception

of the employees as well as their aptitude for effective decision-making, communication,
and interaction are intervening variables. The interstitial variables reflect an organization's
state of health.

 End-result variables: These include productivity, loss, costs, and earnings. The end-result
variables show an organization's accomplishments.

12.2 Effectiveness vs efficiency

Efficiency means that whatever you create or do should be done flawlessly. Although
effectiveness has a broader definition, it refers to how well the intended outcome—doing
accurate things—has been fulfilled in terms of actual results. These metrics are used to evaluate
an employee's performance within a company. The two terms that people employ in opposition
to one another most frequently are efficiency and effectiveness, even though they are distinct.
Effectiveness is the degree to which anything is successful in producing the desired result,
whereas efficiency is the state of achieving the highest production with the least amount of
work. Efficiency and effectiveness both hold a major position in the business world and must be
upheld by the organisation since they are essential to its success. Efficiency takes an
introspective perspective; it assesses how well the organization's operations, processes,
personnel, costs, and other factors are performing. It clearly focuses on lowering costs,
eliminating waste, and avoiding extra expenses in order to provide the desired result with a
specified quantity of inputs. Effectiveness, on the other hand, takes an extroverted approach
that emphasises the relationship between the business organisation and the rest of the world in
order to achieve a competitive position in the market. In other words, it aids the organisation in
determining the potency of the entire organisation by developing strategies and selecting the
most effective methods for achieving the desired results.

The following sentences highlight the key distinctions between effectiveness and efficiency:
 Efficiency is the capacity to generate the most amount possible given the available
resources. Effectiveness is the degree to which the actual result is as close to the planned
result as possible.

 While effectiveness is "to do things perfectly," efficiency is "to do things perfectly."

 Efficiency has a near-term viewpoint. On the other hand, effectiveness is viewed from a
long-term perspective.

 Efficiency is focused on yield. As opposed to effectiveness, which emphasises results.

 When a strategy is put into action, efficiency must be maintained, but when a strategy is
being formed, effectiveness is needed.
  While an organization's activities are measured for efficiency, its own plans are evaluated for
effectiveness.

 Efficiency is the result of real output after taking into account the quantity of inputs.
Effectiveness, on the other hand, is related to both means and ends.

12.3 Measurement of organizational effectiveness

The net profit as a percentage of the desired profit is typically used to gauge organisational
effectiveness in businesses. Data on growth and the findings of customer satisfaction surveys could
be used as additional indicators. Powerful leadership, sound organisational structure, people, work
procedures, and systems are all characteristics of effective organisations. An organisation must
adjust to its shifting environment in order to succeed long-term. One tactic used to ensure an
organization's growth and development is evaluating and enhancing organisational effectiveness and
efficiency. It's crucial to comprehend a company's organisational effectiveness for a number of
reasons. It gives investors, contributors, or employees with a sense of the company's strengths and
exposes areas of ineffectiveness that can be the focus of adjustments. It also acts as a report on how
successfully internal processes are meeting an initial vision.
Sometimes, a company's financial performance alone cannot determine its success or failure. Even a
business that is now profitable may not be productive if it is not meeting the underlying values of its
mission statement, managing to retain competent staff, and planning for future endeavours.
Organizational effectiveness assesses a company's general performance based on a variety of
factors.
Methods to enhance Organisational effectiveness
Utilizing the appropriate techniques and tactics to accomplish a certain objective is essential for
organisational efficiency.
 Utilizing Human Resources - The organisational effectiveness of a corporation is significantly
influenced by the human resources division. Employees in human resources assist in
developing new business plans. They have an impact on the company's objectives and are
crucial in the employment of new personnel. They ought to be involved in the planning and
execution of any internal improvements that may strengthen the business. They provide
distinctive viewpoints that leaders might overlook and actively participate in choosing the
best candidates for open jobs inside the organisation.

 Concentrate on Growth and Education - Organizational leaders should take proactive steps
to collaborate with various groups and people. Before creating a work plan to increase the
effectiveness of the organisation, a leader must be aware of the advantages and
disadvantages of various professionals. Prior to implementing any modifications to the firm,
it is important to take into account the specialists' education in the various fields. It is
important to consider their aptitudes, competencies, and strengths. It is important to
pinpoint their flaws or the places where particular specialists have trouble cooperating as a
team. Leaders should motivate employees to work toward specific objectives and assign
assignments based on their qualifications, experience, and background. Understanding
diverse specialists, their roles within the organisation, and how to enhance or leverage
particular capabilities is necessary for organisational effectiveness.
  Keeping the clientele in mind- When determining the demands and interests of the clients,
organisational effectiveness performs effectively. Both effective management and overall
business efficiency are critical. Customers search for alternatives to meet their wants and
achieve their objectives if a professional does not offer a high-quality good or service.

 Customers can be asked to participate in surveys or to provide feedback on the services

received. Learn what the clients want from the business in terms of their requirements and
objectives. Utilize social media to get customer feedback, and let them submit comments.

 Focus on producing quality services or goods – Although customers are crucial to a business'
success, it is also necessary for it to offer high-quality goods and services. The aim is to
preserve a balance between high-quality and affordable alternatives. Any company wants to
increase product quality while staying inside its allocated spending limit. taking advice on
how to make the items better without raising the cost of the materials from specialists in
various fields. A leader obtains a variety of ideas about how to improve the organisation by
enlisting specialists from other fields in the decision-making process.

 Utilize technology- When it comes to improving organisational effectiveness, technological

tools are crucial. Utilize PCs, tablets, or cellphones to boost business productivity. Even when
they are not actively working on the project, keep the team members informed of its status.
Work with technical specialists to identify the most effective solutions to safeguard the
company's and its clients' information without exceeding a predetermined budget. Utilize
software solutions created specifically to increase workplace effectiveness or efficiency. A
business strategy known as organisational effectiveness aims to boost organisational
effectiveness without sacrificing product or service quality.

12.4 Approaches to organizational effectiveness

 Goal approach – The objective method seeks to maximise profits by providing the highest
possible level of service, with the expectation that this would result in increased output. One
of the drawbacks of using a goal-oriented strategy is that it might be challenging to
distinguish between the actual aim and the ideal goal.

 System-resource approach – The system-resource approach places the responsibility for

success on the interdependency of the processes that bring an organisation into harmony
with its surroundings. It takes the form of interactions involving inputs and outputs and
encompasses all of the relevant human, economic, and physical resources. The acquisition of
resources from the environment ends up becoming aligned with the purpose of the
organisation, and as a result, this strategy ends up becoming relatively comparable to the
goal-oriented strategy. This is the limitation of this approach.

 Functional approach –The functional approach presupposes that the organisation has
already determined what its aims are, and that the primary focus at this point should be on
figuring out how to achieve these goals while also contributing to society. This strategy has
the drawback that the organisation has the freedom to pursue its aims in whatever way it
sees fit, which raises the question of why the organisation would accept the provision of
services to the community as its ultimate objective.

12.5 Likert’s model of organizational effectiveness

The Likert Management System is a management theory that examines the numerous leadership
approaches that are available to managers working inside an organisation. Rensis Likert proposed
four management styles in the 1960s, with the intention of describing the interaction, roles, and
involvement of managers and subordinates in industrial situations. These management styles can be
broken down into four categories. His research and the techniques he established were based,
among other things, on research into highly productive supervisors working for an American
insurance company. After some time, these management techniques were rethought, and today
they are modelled after educational institutions. The purpose of the latest research was to
investigate and analyse the roles played by students, teachers, and school administrators. In the end,
the research also included participation from other people, such as administrators, parents, and
regulators.
The management theory developed by Rensis Likert brought a fresh perspective to previously
established theories and ideas concerning the growth of organisations. For the very first time, the
results of all the study into group dynamics were able to be qualified thanks to the implementation
of such a system. The Likert Management System makes it more easier to evaluate managers' "soft
talents," which include trust and communication abilities, amongst others. Rensis Likert and his
fellow employees at the University of Michigan in the United States conceived up the Likert
Management System in the 1960s and went on to improve it. More than two hundred different
organisations were investigated over the course of three decades. Likert was of the opinion that the
roles that management played and the relationships that they had with their employees were
directly related to the question of whether or not a company has the potential to become successful.
In addition to this, he was of the opinion that there are other levels on which issues could be
answered. With this frame of mind, he identified four management styles in the Likert Management
System, all of which are subject to change based on the manager and the overall context of the
organisation, as follows:

1. Exploitative Authoritative
 When it comes to management, an exploitative-authoritative structure indicates that those
in higher-up positions in the hierarchy are the ones who bear the blame. The people who are
lower on the organisational hierarchy, known as subordinates, have no say in the decisions
that are made and are not involved in this process.

 The people at the top don't put much stock in those working below them, and when it
comes to making decisions, there is no place for debate. Instead of being a two-way street,
communication in such a system goes in only one direction: downward.

 Warnings and other forms of intimidation are typically what are conveyed to workers
through company communication. As a direct consequence of this, only upper management
feels responsibility for the accomplishment of organisational goals.

2. Benevolent Authoritative
 The Likert Management System includes a style of management known as the benevolent-
authoritative management system. This form of management is a form of management in
which the responsibility also falls in the top tier in the hierarchy.

 The primary distinction between this method and the one described above is that the
motivation of the workers has not been created through the use of threats and warnings,
but rather through the provision of rewards.
  The superior has more faith in his subordinates, and the subordinates are rewarded for their
participation because of the superior's increased faith in them. Communication already leans
more toward being a two-way street, but it is still confined to what an employee's superior
would like to hear when it is directed from the employee to the superior. In essence, the
subordinates do not consider themselves to be free to offer recommendations or provide
ideas pertaining to their work. The end effect is a breakdown in communication and
collaboration among team members.

3. Consultative

 In a consultative management system, the superior places a significant amount of

trust in his subordinates, but not entire faith in them. They exhibit this level of faith
in their subordinates and make beneficial use of the views and attitudes that they
themselves hold.

 Rewards and the individual's level of involvement contribute to an increased level of

motivation in workers. It is common knowledge that engaging in work that has
significance can boost one's levels of intrinsic motivation.

 An open line of communication is one of the defining characteristics of the

consultative management system. The majority of subordinates have the impression
that they are free to make work-related ideas or problems known and available for
discussion, and there is a flow of information that travels both horizontally and
vertically across the organisation. Even if there is some room for discussion,
decisions are ultimately left up to higher management, who operate independently.

4. Participative
 The Likert Management System is an example of a participative management style in which
higher-level management puts complete faith in lower-level employees and strongly
encourages those employees to take an active role in the decision-making process.

 The workers have been given the impression that they are free to discuss any topic with
their supervisors. The participative management system is distinguished, in addition, by the
strong extrinsic motivator aspects of effective teamwork and remuneration.

 The trust that lower management has in higher management is at a high level, as is the
amount of openness and frequency with which communication takes place.

12.6 Adaptive coping cycle

Edgar H. Schein suggested that an organisation can accomplish this through the adaptive coping
cycle, which consists of various activities that enable an organisation to cope with the dynamics of
environment. The organisation must develop a system through which it can adapt or cope with the
environmental requirements. The process of adaptive-coping cycle is ongoing. The adaptive-coping
cycle has six stages, which are as follows:
  Sensing of Change: The first stage is when a change in the environment, whether internal or
external, is felt. For efficient environmental coping, the majority of firms have adaptive sub-
systems including marketing research, research and development, and other comparable
devices.

 Importing the Relevant Information: Organizations must be able to access the input, or the
relevant information, from the outside world.

 Conversion Process Modification: During the conversion process, the organisation collects
environmental inputs for subsequent processing.

 Stabilizing Internal Changes: The fourth cycle stage entails stabilising an organization's
internal sub-system that depends on an external sub-system. This is because changes in one
might have an impact on others, and those changes may be favourable or unfavourable.

 Investigating New Outputs: After the internal transformation has stabilised, the company
can export new outputs that adhere to environmental standards.

 Feedback: The final stage of the cycle involves getting feedback on the results of the
adjustments in order to better gauge the condition of the external environment and the
level of integration of the internal environment. This is comparable to stage one.

According to the theory of successful coping, each step must be successfully navigated, and failure at
any one of these stages may result in ineffectiveness.
The key organisational requirements for efficient coping are as follows:
 A reliable method of communication that can transmit accurate information should be in
place.
 An organization's internal flexibility should be sufficient to allow for the introduction and
acceptance of changes.
 Integration and dedication to organisational goals, which foster a willingness for change, are
necessary for successful coping.
 There should be a positive internal environment that can encourage effective
communication, lessen rigidity, and promote self-defense.
 It takes more work to maintain organisational performance, especially when significant
organisational changes occur.

Summary
The effectiveness with which a company can achieve its goals is known as organisational
effectiveness. This refers to a business that achieves its goals or a business that is lucrative without
wasting resources. In order for an organisation to be productive, everyone must perform to the best
of their abilities. In other words, it refers to an organization's ability to achieve the required
outcomes with a minimal expenditure of effort, time, money, and material and human resources.
The organization's objectives will determine the desired outcome. A company can increase its
earnings by producing and selling a product with minimal waste in order to meet its financial
objectives. The two facets of organisational effectiveness are organisational development. The body
of knowledge known as organisational development places emphasis on the growth of
organisational effectiveness, particularly during times of transition.